Season's Greetings

Market Update

Homebuyers Benefit from Lower Prices

Vancouver, BC – December 12, 2008.

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 67 per cent to $1.07 billion in November, compared to November 2007. Residential unit sales were down 62 per cent to 2,707 units during the same period. The average MLS® residential price in the province was $395,687, down 12.5 per cent from November 2007.

“The average sale price of a home in the province hit a 26-month low in November,” said Cameron Muir, BCREA Chief Economist. “The irony of markets is that there’s no shortage of buyers when prices are near a peak and a scarcity of buyers when prices are near a trough.” Home prices were 8 per cent lower in November 2008 nine months after the peak than they were nine months prior to the peak.

“Today’s homebuyers are benefiting from a greater selection of homes for sale, more time to thoroughly investigate their choices and the ability to negotiate attractive prices,” added Muir.

Year-to-date MLS® residential sales dollar volume in the province declined 30 per cent to $30.3 billion compared to the same period last year. Provincial MLS® sales declined 32 per cent to 66,467 units, while the average residential price increased 4 per cent to $455,537 over the same period.

Market Review

Slow home sales create window of opportunity.

VANCOUVER, B.C. – December 2, 2008.

November reductions in home sales and prices have helped improve affordability in Greater Vancouver. However, November also saw a corresponding decrease in the number of new homes coming onto the market.

In its most recent statistics release, the Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 69.7 per cent in November 2008 to 874 from the 2,883 sales recorded in November 2007.

Residential benchmark prices, as calculated by the MLSLink Housing Price Index®, declined 12.8 per cent between May and November 2008, amounting to an 8.3 per cent year-to-date price reduction for detached, attached and apartment properties in Greater Vancouver between November 2007 and 2008. In May 2008, the overall residential benchmark price was $568,411, compared to $495,704 in November 2008.

“Times of turmoil, from which we always emerge, offer excellent opportunities to buy quality real estate,” says REBGV president, Dave Watt.“For those whose personal finances allow them to get involved, there are opportunities in today’s housing market that have not been seen in many years.

“The local real estate market is not immune to the current economic challenges globally; however, Canada’s disciplined lending structure has kept the mortgage landscape steady in these uncertain times.”

New listings for detached, attached and apartment properties declined 10.8 per cent to 3,012 in November 2008 compared to November 2007, when 3,377 new units were listed. Active listings in November declined 4.7 per cent to 18,348 from the 19,257 active listings in Greater Vancouver in October 2008.

Sales of detached properties in November 2008 declined 69.8 per cent to 322 from the 1,067 units sold during the same period in 2007. The benchmark price for detached properties declined 8.6 per cent from November 2007 to $666,525. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 13.6 per cent.

Sales of apartment properties declined 67.9 per cent last month to 410 compared to 1,276 sales in November 2007. The benchmark price of an apartment property declined 8.6 per cent from November 2007 to $342,315. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined 12.2 per cent.

Attached property sales in November 2008 decreased 73.7 per cent to 142, compared with the 540 sales in November 2007. The benchmark price of an attached unit declined 6.4 per cent between November 2007 and 2008 to $426,287. Since May 2008, the benchmark price for an attached property in Greater Vancouver has declined 11 per cent.

Commercial Real Estate

More Metro businesses take to subleasing to trim costs.
Amount of office space available increases rapidly.

Derrick Penner
Vancouver Sun
Wednesday, November 26, 2008.

More Metro Vancouver businesses are suddenly looking to sublet some of their office space as a way of cutting costs in tough economic times, recent reports from prominent commercial realtors indicate.

Resort company Intrawest is putting two of the floors that it holds in Waterfront Centre at 200 Burrard Street up for sublease. And companies ranging from Rocket Gaming and Intrynsic Software to Weyerhaeuser Canada Inc. and Lundin Mining are giving up some of their offices for others to use on a short-term basis.

Shawna Rogowski, director of research at Colliers International, said in an interview that many tenants are taking a cautious view given the uncertain state of the economy. She said these are companies that perhaps held extra office space with a view to expanding, but are now looking at consolidating and cutting costs, or even downsizing.
"Companies are really pinching every penny that they can," she said. On Tuesday, Rogowski put out an interim report acknowledging the rapid increase in the number of companies putting space up to rent.

Available sublease space rose to nearly 600,000 square feet, with some 150,000 square feet of put on the market in October alone, and another 135,000 square feet added in the first half of November, Rogowski said.
In its last quarterly report, Colliers counted 139,291 square feet of vacant sublease space across Metro Vancouver, with 63,442 square feet of that in downtown Vancouver. By the end of October, that had grown to 578,213 square feet of sublease space across Metro, with 274,396 downtown.

That is a mere blip in Metro Vancouver's 52-million-square-foot office market (by Colliers's count), but it is a telling trend, said Nicholas Westlake, senior analyst with CB Richard Ellis Ltd."The thing that's significant is the number and rate at which they're coming up," Westlake said.

The firms that are rationalizing their space, are "better positioning themselves for the long haul," he said.
On the upside, Westlake said the new circumstances open up some breathing room for tenants wanting to locate downtown. Subleased spaces will also carry the rents of their primary tenants, which will be lower than current rents, helping to moderate recent spikes in downtown rents.

However, demand for that new sublease space "is a tough measure to calculate," said Norm Taylor, an associate vice-president at Colliers.Taylor said many companies are touring the new space, but are wary of making deals in the current climate, especially if they have to appeal to a board of directors or the sentiments of shareholders.
"If they need to hire a moving truck that wasn't budgeted for in this year's capital, they're just not going ahead with it," Taylor said.

Market Update

Financial/Equity Markets Impact October Home Sales.

Vancouver, BC – November 14, 2008.

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 54 per cent to $1.69 billion in October, compared to October 2007. Residential unit sales were down 51 per cent to 4,018 units during the same period. The average MLS® residential price in the province was $420,259, down 6.5 per cent from October 2007.

“Housing demand was negatively affected by the global financial crisis and a sharp downturn in the equity markets,” said Cameron Muir, BCREA Chief Economist. “These events exacerbated an already low level of consumer confidence, keeping many potential homebuyers on the sidelines.”

Residential sales in October were the lowest since December 2000, on a seasonally adjusted basis. “Home sales are unlikely to fall much further,” added Muir. “While the provincial economy has weakened, the fundamentals support a higher level of home sales than experienced last month.” Year-to-date MLS® residential sales dollar volume in the province declined 27 per cent to $29.2 billion compared to the same period last year.

Provincial MLS® sales declined 30 per cent to 63,760 units, while the average residential price increased 5 per cent to $458,078 over the same period.

SOLD

I am pleased to annouce the sale of 4321 Greta Street , Burnaby.

For further information please visit: www.danmccarthy.ca

Market Review

Residential housing price decline creates buying opportunities.

VANCOUVER, B.C.
November 3, 2008

Housing price reductions across Greater Vancouver over the last six months have eliminated price gains witnessed in the first quarter of 2008. The Real Estate Board of Greater Vancouver (REBGV) reports that residential benchmark prices, as calculated by the MLSLink Housing Price Index®, declined 8.8 per cent between May and October 2008, resulting in a 3.9 per cent year-to-date price reduction for detached, attached and apartment properties in Greater Vancouver between Octobers 2007 and 2008.

In May 2008, the overall residential benchmark price was $568,411, compared to $518,668 in October 2008.

“Home sales are not keeping pace with the positive economic conditions in BC,” said REBGV president, Dave Watt. “That’s a direct result of a loss of consumer confidence in the overall market. Accordingly, today’s housing market is characterized by moderating home prices and wide selection. It’s definitely a buyer’s market.”

Residential property sales in Greater Vancouver declined 55 per cent in October 2008 to 1,364 from the 3,028 sales recorded in October 2007.

Active listings totalled 19,257 in October 2008, a three per cent decline from the 19,852 active listings reported in September 2008. New listings for detached, attached and apartment properties increased one per cent to 4,867 in October 2008 compared to October 2007, when 4,819 new units were listed.

Sales of detached properties in October 2008 declined 56.5 per cent to 493 from the 1,133 sales recorded during the same period in 2007. The benchmark price for detached properties declined 4.7 per cent from October 2007 to $695,962. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 9.8 per cent.

Sales of apartment properties in October 2008 declined 52.7 per cent to 647, compared to 1,368 sales in October 2007. The benchmark price of an apartment property declined 3.5 per cent from October 2007 to $358,359. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined eight per cent.

Attached property sales in October 2008 are down 57.5 per cent to 224, compared with the 527 sales in October 2007. The benchmark price of an attached unit declined 1.4 per cent in Greater Vancouver between October 2007 and 2008 to $448,152. Since May 2008, the benchmark price for an attached property in Greater Vancouver has declined 6.4 per cent.

Market Update

Consumer Confidence Key to Housing Market Conditions.
BCREA Fall Housing Forecast

Vancouver, BC – October 29, 2008.
The British Columbia Real Estate Association (BCREA) released its fall 2008 Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 28 per cent from 102,805 units in 2007 to 73,700 units this year. A modest 4 per cent increase to 76,500 units is forecast for 2009.

“The erosion of consumer confidence that began with rising fuel prices earlier in the year is continuing, as BC MLS® Residential Sales the global financial crisis and volatile equity markets have BC households concerned about their own finances,” said Cameron Muir, Chief Economist.

A weaker provincial economy is expected to increase the jobless rate from 4.4 per cent this year to 4.9 per cent in 2009. “While some job losses will occur next year, BC households will remain on a relatively solid financial footing,” added Muir.

The average MLS® residential price is forecast to increase 3 per cent to $453,000 this year. However, home prices peaked in the first quarter and have been edging lower for several months. For 2009, the average price is forecast to decline 9 per cent to $413,000, with most of the decrease having already occurred by the end this year.

Downward pressure on home prices is expected to ease by the second quarter of 2009, as an increase in affordability and consumer confidence induces a modest growth in sales. The inventory of homes for sale is also expected to decline in the coming months as potential home sellers delay putting their homes on the market until conditions improve.

The full BCREA Housing Forecast is available here: www.bcrea.bc.ca/economics/HousingForecast.pdf.

SOLD

I am pleased to announce the sale of # 802 - 4380 Halifax Street, Burnaby , B.C.

For further information, please vist: http://www.danmccarthy.ca/

Market Update

Home Prices Down; Affordability Improves.

Vancouver, BC – October 15, 2008.

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 39 per cent to $2.1 billion in September, compared to September 2007. Residential unit sales were down 34 per cent to 5,107 units during the same period. The average MLS® residential price in the province was $412,149, down 7 per cent from September 2007.

“Weaker consumer demand and a large number of homes for sale are having an impact on home prices in the province,” said Cameron Muir, BCREA Chief Economist. “Despite relatively strong fundamentals, consumer confidence is low. The global liquidity crisis and volatile equity markets are intensifying this sentiment, causing many households to pull back spending on major purchases.”

“However, affordability is improving,” added Muir. “The carrying cost of the average home in the province is now lower than at any time since the end of 2006.”

Year-to-date MLS® residential sales dollar volume in the province declined 24 per cent to $27.5 billion compared to the same period last year. Provincial MLS® sales declined 28 per cent to 59,742 units, while the average residential price increased 6 per cent to $460,621 over the same period.

Quest For Excellence

RE/MAX is pleased to announce the Quest for Excellence Bursary program for 2009 program is now open for submissions!

Students are able to apply on-line at http://www.remax-western.ca/ and complete the on-line entry form from September 15, 2008 to March 6, 2009.

Winners will be posted on the RE/MAX website on May 4th, 2009. Grade 12 students in Western Canada, graduating in the 2008/2009 school year, are eligible to win one of 24 cash bursaries of $500. from RE/MAX of Western Canada.

Details can be found on http://www.remax-western.ca/ under the Quest logo or click here for the 2009 Quest for Excellence Bursary Program information flyer.

RE/MAX Anniversary

RE/MAX Global Balloon Day Marks
30 Years of Flight.

RE/MAX of Western Canada Joins Worldwide
Celebration of Anniversary.

(Kelowna, BC Oct. 6, 2008)

RE/MAX of Western Canada will join RE/MAX offices around the globe in commemorating the 30th anniversary of the renowned RE/MAX Hot Air Balloon. Eight RE/MAX hot air balloons are scheduled to fly in Edmonton, Calgary, the Fraser Valley (of Vancouver), Winnipeg, Saskatoon, Regina and Grande Prairie to commemorate the first flight of a RE/MAX balloon, in 1978.

“It’s an excellent opportunity to celebrate our company’s heritage,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The RE/MAX brand, including the balloon, is a big part of what’s made our brand so successful – it’s a symbol of our commitment to rise above the crowd and provide the most professional real estate services to real estate customers and clients in Western Canada.”

These flights will be held in conjunction with RE/MAX Hot Air Balloon flights at locations around the world.
RE/MAX balloons will fly in a kaleidoscope of more than 700 colourful hot air balloons in the “Flight of the Nations Mass Ascension” during the Albuquerque International Balloon Fiesta, October 4-12, 2008. In Oregon, RE/MAX pilot Darren Kling, will attempt a crossing of the Cascade Mountains, taking off in the Willamette Valley, passing by Mt. Jefferson and landing near Bend.

The RE/MAX Hot Air Balloon Fleet is one of the largest in the world, with over 100 balloons located on six continents. The distinctive red, white and blue balloon, which represents the international real estate network, has become one of the most recognized corporate images in the world.

Because of the strong brand awareness it creates, the RE/MAX balloon has helped take the international franchisor to the top of several national and international brand rankings including Advertising Age’s Top 200 US Megabrands and Entrepreneur Magazine’s Franchise 500 Survey. In these two surveys, RE/MAX was the highest ranked real estate franchisor. In the Entrepreneur Franchise 500, RE/MAX has been the highest ranked real estate franchisor for eight of the last ten years.

Information about the RE/MAX Hot Air Balloon program can be found at www.remax.com.

About RE/MAX of Western Canada

RE/MAX is Canada's leading real estate organization with over 6,000 sales associates, situated throughout its more than 234 independently owned and operated offices across Western Canada. The RE/MAX franchise network, now in its 34th year, is a global real estate system with member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management. For more information, visit: www.remax-western.ca.

Market Review

Home prices adapt to affordability demands.

Vancouver, B.C.
October 2, 2008

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 42.9 per cent in September 2008 to 1,585 from the 2,776 sales recorded in September 2007.

New listings for detached, attached and apartment properties increased 28.8 per cent to 6,142 in September 2008 compared to September 2007, when 4,770 new units were listed.

“After five years of unprecedented increases, housing prices are beginning to realign,” REBGV president, Dave Watt said. “Although the economic situation in the United States has affected consumer confidence globally, the consensus view remains that our local housing market is underpinned by solid economic fundamentals.”

Sales of detached properties in September 2008 declined 50.3 per cent to 546 from the 1,099 units sold during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties declined 1.6 per cent from September 2007 to $726,331. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 5.8 per cent.

Sales of apartment properties declined 35.1 per cent last month to 764, compared to 1,177 sales in September 2007. The benchmark price of an apartment property declined 0.7 per cent from September 2007 to $369,062. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined 5.2 per cent.

Attached property sales in September 2008 decreased 41.9 per cent to 450, compared with the 775 sales in June 2007. The benchmark price of an attached unit increased 7.6 per cent between June 2007 and 2008 to $476,585. Since May 2008, the benchmark price for an attached property in Greater Vancouver has declined 3 per cent.

Market News

Luxury home sales hold steady in most major markets across the country, says RE/MAX.

Two-thirds of markets surveyed report upswing in the number of upper-end homes sold in 2008.

Kelowna, BC (September 25, 2008)

Luxury home sales have outperformed virtually all other residential price points this year, but activity in the top-end is expected to taper in most major Canadian centres in coming months, according to a report released today by RE/MAX. The RE/MAX Upper-End Report, which highlights trends and developments in 15 housing markets across the country for the first seven months of 2008 found Vancouver, Victoria, Regina, Saskatoon, Winnipeg, London, Kitchener-Waterloo, Ottawa, Halifax-Dartmouth, and St. John’s all experienced an upswing in sales activity, while declines were noted in Kelowna, Calgary, Edmonton, Hamilton-Burlington, and Toronto.

Also significant is in all but two markets, percentage increases in sales were greatest in the upper-end when compared to the overall residential marketplace in 2008. “In two-thirds of the markets we surveyed, demand for upscale homes surpassed peak levels reported last year,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “However, with supply edging higher in most major centres and few markets reporting tight inventory levels, we are seeing a return to more balanced conditions.

This situation is expected to have an impact on high-end values in coming months, especially in areas that have experienced consistent double-digit growth.” Although the top-end of the market represents less than five per cent of total sales, activity is generally a gauge of overall market conditions. Leading the country in terms of percentage increase in luxury home sales are Regina (up 306 per cent); Winnipeg (up 89 per cent); St. John’s (up 78 per cent); Saskatoon (up 72 per cent); Kitchener-Waterloo (up 47 per cent); Ottawa (up 36 per cent); Halifax-Dartmouth (up 20 per cent); London (up 14 per cent); Greater Vancouver (up five per cent); and Victoria (up four per cent).

Solid performance is likely a result of consumer confidence, particularly in provinces like Saskatchewan, Manitoba, Newfoundland, Nova Scotia, and parts of Ontario where solid economic fundamentals helped to bolster the number of homes sold in the upper-end. “Given the transition occurring in most residential real estate markets, upper-end sales remain exceptionally strong,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “The market for luxury homes is usually the first to show pressure cracks, but the reverse is actually true this year, with pent-up demand (due to trade-up activity), less speculation, and job transfers all factors contributing to stability in this segment. That being said, we feel uncertainty in financial markets both here and abroad will give purchasers cause for concern in the immediate future.”

The RE/MAX Upper-End Report also notes serious appreciation in housing values in recent years has pushed upper-end price points to new levels. This is especially so in Western Canada where $2 million is now merely a starting price in Greater Vancouver, while in the tony Westside, that figure is closer to $4 million. Calgary is steady at $1 million this year, but is pushing closer to the $1.5 million benchmark. In Ottawa, where the upper-end price point is currently pegged at $750,000, sales are increasingly occurring over the $1 million mark. Other highlights include:
The most expensive MLS sale in Canada in 2008 occurred in Greater Vancouver with a sticker price of $11.5 million. A property priced at $9 million in Greater Toronto sold in a multiple offer situation for more than $11 million as well. The priciest condominium currently listed for sale on MLS is priced at $14.8 million in Greater Vancouver – reduced from $18 million earlier this year.

The Four Seasons Hotel, currently under construction in Greater Toronto’s Yorkville area, has the most expensive list price in the country - $30 million for a penthouse suite on the 55th floor.

RE/MAX is Canada's leading real estate organization with over 18,000 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, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage more than 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management.

The Childrens Charity Grand Prix

The 2008 Children’s Charities Grand Prix at the River’s Edge Road Course, Mission Raceway Park. September 20/21, 2008.
Post Race Press Release.
Sept 22nd – Mission, B.C.

The first ever Children’s Charities Grand Prix benefitting the BC Children’s Hospital and The Children’s Wish Foundation took place at the 1.33 mile newly-improved 9 turn River’s Edge Road Course Sunday and what a race it was! The entire weekend was like a game of weather-roulette for the 26 P1 and P2 teams and drivers. The competitive spirits were quite obvious with many of the CCGP drivers and teams out testing on the Friday the 19th in preparation for the ½ hour, $10,000 feature race.

Many ‘unofficial’ very fast times were recorded by a variety of stop watches and on-board timers. Saturday saw the entire CCGP field in action. The skies threatened, but the track stayed dry for both morning practice and afternoon qualifying sessions.

Qualifying saw Andy Pearson (Specialty Engineering/GT1 Camaro) setting the fastest time at a 1:09.527 with Glenn Nixon (Bullet Racing/Porsche 911 TT) posting a very impressive 1:09.778 to round out the front row. Andy was the proud recipient of the ‘Centaur Awards’ Pole Position Plaque. Row two was made up P2 Pole-Winner Collin Jackson (Specialty Engineering/GT3 Nissan 240 SX) with a blazing fast time of 1:10.129 along with P1 driver Dave Cormier in his VI Fitness Centres Porsche 911 GT2 RSR at a 1:10.578.

Before the feature race Sunday, the fans were informed that Steve Paquette (Bullet Racing/Porsche 911 GT3) who had qualified an impressive 6th overall had to pull out due to shoulder problems. In his place, ex-Indy Car/Sports Car Ace Ross Bentley was brought in to substitute. Ross was required to start from the back of the field in the same car that was campaigned by Bullet Racing at this year’s Daytona 24 Hours, stay tuned!

Once the driver introductions were complete, 10 year-old Chloe Howlett and her cousins gave the ‘Gentlemen Start your Engines’ command and the field went off on it’s two pace laps. As CCGP Honorary Starter, Drew Hellevang dropped the green, the first ever Children’s Charities Grand Prix was under way with field of cars never seen together charging into turn 1.

Andy Pearson took the early lead as Glenn Nixon chased about a second back in his Twin Turbo Porsche. The race featured lots of great racing throughout. The front pack included Dave Humphries (Specialty Engineering/ GT3 Nissan 240 SX) Tim Brown in his beautifully prepared Brown Bros. Ford/Lincoln, Mustang Cobra R, Rocky Elli (All West Insurance/GT1 Monte Carlo), Wouter Bowman (RX7 Turbo), Tony Morris Jr (Proformance Racing/Monte Carlo), Gerald Paetz (Nixon Prosports/Monte Carlo) and Simon Parker (Lamplighter Bar & Grill/ Monte Carlo). This also included legendary Porsche Driver, Kees Nierop who was battling hard in his Proformance Racing Chevy Monte Carlo and David Saville-Peck who put on a show in his small-but-mighty Super 7 Cars Inc., Caterham Super 7.

Unfortunately, as the cars had circulated during the pace laps, the wind picked up creating a fall wonderland of leaves from turn 3 right through to turn 7. This caused a variety of overheating problems which saw Tim Brown out of the race on lap 2 and both Collin Jackson and Dave Humphrey’s to visit the pits to have leaves removed. Tim was unfortunately-fortunate to receive the Riddleworks Helmet Paint Job ‘Hard Luck Award’. Kudos to the corner volunteers who had worked feverishly before the race to make sure the track was leaf-free.

The Corvette contingent was out in force with cars in both the P1 and P2 classes. Marty Knoll finished 9th overall driving the ex-Frank Allers/Speed GT Tom Johnston Racing Corvette C5. Finishing 4th and 5th respectively in P2 were Bryan Holyk (Bishop Sales/Corvette C5) and Chris Chamberlain (Davenport Motorsports/ Corvette C5) (CCGP Cont’d) Rounding out the top 6 positions in both P1 and P2 were Peter Weedon (Kenwood/Kool Coat GT1) and Dr. Carlos Tesler-Mabe (Carmen and Camille/Porsche 911). Peter had an impressive race charging from 22nd on the grid and Carlos gave up racing at the Miller Motorsports Park, Utah Grand Am finally to join us with his entire family for this groundbreaking event. Harry Watson (Metro Testing/Turbocharged Miata) battled hard throughout the race in his Specialty Engineering-prepared Mazda coming home 7th overall in P2. Larry Bell (ReEntry Racing/Pontiac Trans Am) and Michael Stevenson (Porscon Construction/Monte Carlo) drove great races to end up 10th and 11th in the P1 class. Lou Gruzelier (Bullet Racing/Porsche 911) drove a fantastic race to finish 8th overall in P2. Now back to Ross Bentley (Bullet Racing/Porsche GT3).

Ross put on an unbelievable demonstration of controlled aggression, coming through the field to finish 2nd overall. Of the 26 cars entered, only 24 took the green flag as both Jeff Lowe (Anducci’s/RE/MAX Panoz GTS) and Doug Yip (Engines of Interest/Ford Mustang) did not start due to mechanical difficulties. Ryan Ennis (West Coast Hot Rods/Mazda RX7) battled transmission woes all weekend and retired very early in the race.

The final standings in P1 had Andy Pearson in 1st place with Dave Cormier and Rocky Elli rounding out the podium. In P2, Ross Bentley took the victory with Dave Humphrey and Collin Jackson rounding out the top three.

The weekend also included Hot Laps for Kids which featured an amazing group of cars giving fans the opportunity to go for rides around the track with a donation to the charities. The silent auction featured many great items and was well supported by the great crowd in attendance.

The Children’s Charities Grand Prix was called the biggest race in BC since the Vancouver Molson Indy by Tony Parson’s of Global Television. If the 1st edition is an indicator, the future is bright for Western Canadian Motorsports.

1) Andy Pearson: Chevy Camaro
2) Ross Bentley: Porsche 996 GT3
3) Dave Cormier: Porsche 996 GT2 RSR
4) Rocky Elli: Chevy Monte Carlo
5) Gerald Paetz: Pontiac Grand Prix
6) Tony Morris Jr: Chevy Monte Carlo
7) Dave Humphrey: Nissan 240 SX
8) Collin Jackson: Nissan 240 SX
9) Peter Weedon: Trans Am (Nightfighter)
10) Simon Parker: Chevy Monte Carlo
11) Chris Chamberlain: Chevy Corvette
12) Bryan Holyk: Chevy Corvette
13) Kees Nierop: Chevy Monte Carlo
14) Carlos Tesler-Mabe: Porsche 996
15) Marty Knoll: Chevy Corvette
16) Harry Watson: Turbocharged Miata
17) Michael Stevenson: Chevy Monte Carlo
18) Lou Gruzelier: Porsche 996
19) David Saville Peck: Super 7
20) Larry Bell: Pontiac Trans Am
DNF) Glenn Nixon: Porsche 911 TT
DNF) Wouter Bowman: Mazda RX7 Turbo
DNF) Tim Brown: Mustang Cobra R
DNF) Ryan Ennis: Mazda RX7
DNS) Jeff Lowe: Panoz GTS
DNS) Doug Yip: Mustang Cobra

Luxury Homes

High-end homes set records this year, but still experience some
effects of the housing market slowdown.

Derrick Penner
Vancouver Sun
September 13, 2008

At first blush, the top end of British Columbia's real estate market seems to follow that old observation about the rich being different from the rest of us. Agents recorded 30 sales of mansions over the $5-million mark during the first seven months of this year, according to research by Landcor Data Corp.

The January sale of 3330 Radcliffe Ave. in West Vancouver for $28.2 million set a record for the highest sale price in the province, and the April sale of 6715 Crabapple Dr. in Whistler at $17.5 million marked a new high for the resort community.

That's not to say that high-end properties aren't experiencing some of the slowdown that has hit the overall real estate market.

The number of ultra-high-end sales this year, according to the Landcor count, fell short of the 38 sales over $5 million recorded in the first seven months of 2007. And several of this year's top property sales closed well below the original asking prices.

"There's no doubt that there's been a slowdown," said Grant Connell, an agent with Sotheby's International Realty Canada, who has Metro Vancouver's highest-priced current listing, the Ray Loewen family's Twin Cedars estate in Burnaby, with a $25-million price tag. So far, however, Connell has seen it more as a hesitation on the part of buyers. Buyers may be lacking confidence about which direction the market will go, or are bargain-hunting as inventory builds in the middle segment of the upper end of the market. "[Buyers] are there," Connell said. "Since Labour Day, my phone has been ringing tons, and I'm showing more things," including the Loewen property.

Connell has seen a bit of pressure on prices, but only in some segments, such as the $3.5-million to $5-million segment of West Vancouver, where a lot of houses have been built and there is lots of inventory.
"There is a sense [among buyers] that there is time enough ... to get a deal," he said. "And some people [are looking] for a deal based on what's happening in the market and what they're reading."

Among top-end sales, 3479 Point Grey Rd., on Kitsilano's tony waterfront, sold in June for $10.5 million, four per cent below its original asking price of just under $11 million.

In the leafy enclave of Shaughnessy, the home at 1688 37th Ave. sold at the end of August for almost $6.9 million, almost 11 per cent below its $7.7-million original asking price.

The listing price for Casa Mia, the stately 1930s-era Mediterranean-style villa at 1920 SW Marine Dr., has been reduced to $10.5 million from the $12 million it was listed for last fall. However, Manyee Lui, Casa Mia's listing agent and one of Vancouver's top high-end agents, said the price reduction wasn't due to a lack of interest in the property.
"We have continued interest [in Casa Mia]," said Lui, with Macdonald Realty. "The price reduction is to encourage people to write offers. It's not that we don't have interest." Generally, Lui said that while top-end buyers might be showing a bit of hesitation, she has been busier this year with top-end sales than with mid-range sales.
"I don't think [top-end buyers] are worried about market ups and downs," she added. "In this price range, people are looking for something very special and unique. They're not bound by the economy and all these kinds of things."

The penthouse at 1000 Beach Ave., now on the market for $14.8 million, was listed last September for $18 million.
The current broker for the property, Malcolm Hasman of Angell & Hasman, another of Vancouver's most prominent realtors, said his top-end listings remain active. Hasman noted he has three listings in the $6-million to $10-million range that are "continually being shown, even with the market slowing." "So, where the overall numbers in the mid-range of the market have slowed down, there still seems to be interest in high-end properties in Vancouver."

High-end markets are hard to read, explains Tsur Somerville, director of the centre for urban economics and real estate at the Sauder School of Business at the University of B.C. Somerville added that he hasn't looked specifically at B.C., but typically top-end markets are what economists refer to as "thin markets," with fewer properties and participants than the general market.

For condominiums, for example, there are many similar properties on the market and lots of information to guide buyers on what prices should be, Somerville said.

However, in the mansion market, where each house is unique and there aren't as many offerings, there are fewer comparables. "There is just not a lot of information about what a property is worth," Somerville said. "So you tend to see more variation in the possible prices that a property can get." He added that "the negotiation between what a buyer is willing to pay and what a seller is willing to take is a very different dynamic, because there's not a lot of information that says a property is worth [a particular amount]."

Even if there is a slowing in the overall B.C. market, just as price is less of an object for top-end buyers, top-end sellers don't face the same pressures to sell at prices they don't like. "You're not seeing enormous drops or anything," Connell said of Vancouver. He said sellers of unique homes, such as waterfront properties in West Vancouver, tend to hold out for the value they want to see. Owners put them on the market at high prices because they know there is very little waterfront left.

TOP-20 PRICIEST

Most expensive B.C. residential sales to the end of August:

1. 3330 Radcliffe Ave., West Vancouver, Jan. 8 $28,166,390
2. 12751 Rice Mill Rd., Richmond, April 17 $18,000,000
3. 6715 Crabapple Dr., Whistler, April 30 $17,500,000
4. 3233 Celtic Ave., Vancouver, July 21 $11,500,000
5. 17912 Old Yale Rd., Surrey, April 8 $11,250,000
6. 3479 Point Grey Rd., Vancouver, June2 $10,500,000
7. 5515 Kingston Rd., UBC Endowment Lands, Aug. 27 $9,980,000
8. 1818 Drummond Dr., Vancouver, May 28 $9,000,000
9. 1383 Marinaside Cres. (condo), Vancouver, March 25 $8,500,000
10. 3321 Point Grey Rd., Vancouver, April 9 $8,500,000
11. 5347 Kew Cliff Rd., West Vancouver, Jan. 28 $8,100,000
12. 1757 40th Ave., Vancouver, Jan. 29 $7,900,000
13. 1499 Pritchard Dr., Westside (Kelowna), May 29, $7,412,500
14. 1411 Connaught Dr., Vancouver, Feb. 28 $7,150,000
15. 3061 Mathers Ave., West Vancouver, May 29 $6,900,000
16. 1688 37th Ave., Vancouver, Aug. 27 $6,880,000
17. 4669 Blackcomb Way, Whistler, April 28 $6,700,000
18. 3311 Mt. Lehman Rd., Abbotsford, June 9 $6,520,000
19. 1784 Drummond Dr., Vancouver, April 25 $6,280,000
20. 1437 Minto Cres., Vancouver, Jan. 25 $6,200,000

Market Update

Fewer Homes Being Added to the Market.

Vancouver, BC – September 12, 2008.

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 49 per cent to $2.2 billion in August, compared to August 2007. Residential unit sales were down 47 per cent to 5,175 units during the same period. The average MLS® residential price in the province was $421,685, down 4.1 per cent from August 2007.

“Fewer home sales and larger inventories have tilted most BC housing markets in favour of homebuyers,” said Cameron Muir, BCREA Chief Economist. “However, a significant decline in new listings last month may be a signal that potential home sellers are now taking a wait and see approach.”

New MLS® residential listings in August fell 22 per cent from July on a seasonally adjusted basis, the second largest month-over-month decline in 25 years.

Compared to July, nearly 2,000 fewer active MLS® residential listings were available in the province, a decline of 3 per cent. “Home seller fatigue is now a possibility, as slower demand and competition among sellers lessen the chance of a timely sale,” added Muir.

Year-to-date MLS® residential sales dollar volume in the province declined 22 per cent to $25.4 billion compared to the same period last year. Transactions declined 27 per cent to 54,635 units, while the average residential price increased 7 per cent to $465,132 over the same period.

Market Review

Summer lull sees properties stay on market.

VANCOUVER, B.C.
September 3, 2008

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 1,568 in August 2008, a decline of 53.7 per cent from the 3,384 sales in August 2007, and a 47.7 per cent reduction from the 2,998 sales recorded in August 2006. New listings for detached, attached and apartment properties declined 1.7 per cent to 4,331 in August 2008 compared to August 2007, when 4,408 new units were listed.

“In August, properties on average remained on the market longer than we’ve seen in recent years,” REBGV president, Dave Watt said. “As the market heads into the traditionally more active fall season, we have begun to see property listings recede and prices moderate.”

Sales of detached properties declined 58.5 per cent to 535 in August 2008 from the 1,288 detached sales recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 1.6 per cent from August 2007 to $737,985. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 4.3 per cent.

Sales of apartment properties in August 2008 declined 50.8 per cent to 740, compared to 1,504 sales in August 2007. The benchmark price of an apartment property increased 1.7 per cent from August 2007 to $374,366. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined 3.9 per cent.

Attached property sales in August 2008 are down 50.5 per cent to 293, compared with the 592 sales in August 2007. The benchmark price of an attached unit increased 3.8 per cent in Greater Vancouver between August 2007 and 2008 to $463,433. Since May 2008, the benchmark price for an attached property in Greater Vancouver has declined 3.2 per cent.

As of August 31, 2008, active residential listings totalled 17,950 in Greater Vancouver, a 6.2 per cent decline from the 19,138 active listings seen on July 31, 2008.

Market News

MLS® Home Sales Generate $2 Billion in GDP and 28,800 Jobs.

Vancouver, BC
September 2, 2008.

British Columbia Real Estate Association (BCREA) released today a report on the economic impact of Multiple Listing Service® (MLS®) residential sales to the provincial economy in 2007.

A typical MLS® residential sale generated nearly $42,000 in economic output, $20,000 in Gross Domestic Product (GDP) and $13,000 in household income. Tax revenues to federal, provincial and municipal governments exceeded $9,800. A typical MLS® residential sale also generated 0.28 full time equivalent jobs (FTE).

“MLS® residential sales provide a significant contribution to BC economy,” said Cameron Muir, BCREA chief economist. Every 100 transactions in 2007 generated nearly $4.2 million in economic output and $2 million in GDP.

“While a single home sale has a relatively small impact, the cumulative effect of thousands of transactions is noteworthy,” added Muir.

The province recorded 102,892 MLS® residential sales last year, contributing $4.3 billion to economic output and $2 billion to provincial GDP. Home sales also create employment. For every 100 MLS® residential sales, 28 full-time equivalent (FTE) jobs were generated in 2007. This means 28,800 FTE jobs were needed to service the total number of MLS® residential sales last year.

100 typical MLS® residential transactions added nearly $1.3 million to household income. Total MLS® residential sales in 2007 contributed to more than $1.3 billion in BC household income.

Residential transactions generate significant tax revenue. Every 100 MLS® residential sales in 2007 accounted for nearly $300,000 in federal taxes, $660,000 in provincial taxes and $32,000 in municipal taxes. Total MLS® residential sales in 2007 generated approximately $300 million in federal taxes, $680 million in provincial taxes and $33 million in municipal taxes.

In total, MLS® residential transactions contributed more than $1 billion to government coffers.

For Sale

I am pleased to announce the listing of
# 802 - 4380 Halifax Street.

The Buchanan North. This beautiful 2 bedroom, 2 bath unit's many outstanding features include: maple kitchen cabinets and granite kitchen countertops, large master bedroom and ensuite featuring a large soaker tub, gas fireplace, insuite laundry and a large south-facing balcony. This unit has 1 parking stall and an extra large storage locker. This building has many outstanding amenities including an exercise centre, whirlpool, steam room, sauna and a beautiful outdoor courtyard. The Buchanan North is centrally located within walking distance to Brentwood Mall, Save-On Foods, restaurants, day-care, banking and Skytrain & transit.

For further information please visit: http://www.danmccarthy.ca/

Market Update

Swollen Inventories Favour Homebuyers.

Vancouver, BC – August 15, 2008.

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 38 per cent to $2.9 billion in July, compared to July 2007. Residential unit sales fell 37 per cent to 6,541 units during the same period. The average MLS® residential price in the province was $444,358, down 0.5 per cent from July 2007.

“Home sales have slowed to a level not seen since the beginning of the decade,” said Cameron Muir, BCREA Chief Economist. “BC households are now cautious about making major purchases in light of uncertainty around fuel prices and other inflationary pressures.”

“The slowdown in housing demand has swollen the inventory of homes for sale, putting downward pressure on home prices in some markets,” added Muir. A total of 60,008 homes were for sale on the MLS® in July, an increase of 63 per cent from the previous year.

“While this inventory is expected to decline in the coming months, most BC regions will remain in buyers’ market territory for the remainder of 2008.”

Year-to-date MLS® residential sales dollar volume in the province declined 18 per cent to $23.2 billion compared to the same period last year. Sales transactions fell 24 per cent to 49,448 units, while the average residential price increased 8.2 per cent to $469,676 over the same period.

Market News

Metro housing starts up, Canada down.

Derrick Penner
Vancouver Sun
Monday, August 11, 2008

To the end of July, Metro Vancouver starts of 12,082 outpaces the building that took place in 2007 by 11 per cent. The biggest jumps were in Vancouver and Surrey. Housing starts across Metro Vancouver took a big jump in July as builders continued banging up new homes at a faster clip than in 2007, Canada Mortgage and Housing Corp. reported Monday.

Builders started work on 1,904 new homes in Metro Vancouver in July, a 25-per-cent increase from the same month a year ago. The gain was entirely in multi-family projects, which offset a three-per-cent decline in single-family-home starts. To the end of July, Metro Vancouver starts of 12,082 outpaces the building that took place in 2007 by 11 per cent. The biggest jumps were in Vancouver and Surrey.

"Despite more homes being available on the resale market throughout the year, developers have moved forward and begun construction on projects that have been in the planning stage," Richard Sam, a Canada Mortgage and Housing Corp. analyst said in a press release. "With a number of multiple family-projects still in the pending stage, expect housing starts to be at high levels for the rest of the year."

Housing starts in Abbotsford, however, plummeted 55 per cent in July compared with the same month a year ago to 38 units. The biggest part of the drop was in multi-family projects where builders started on just six units compared with 36 in July 2007.

The July dip softened Abbotsford's results for the year to date, which saw builders start work on 953 units to the end of last month, up 24 per cent from the year previous.

Annualized housing starts plunged 13.6 per cent in July, dropping to 186,500 units from 215,900 units in June, the Canada Mortgage and Housing Corp. reported Monday.

Urban starts fell 14.8 per cent in July compared to June. Multiple housing starts dropped 20.2 per cent to 91,600 units while single starts cooled 6.6 per cent to 69,800 units.

The Children’s Charities Grand Prix

Since the departure of the immensely popular Vancouver Molson Indy, local race fans have been starving for a Professional-style event providing them with the sights, sounds and thrills that go along with Motorsport Entertainment.

The Children’s Charities Grand Prix is the most exciting Motorsport news in British Columbia since the Champ Cars last graced the streets of Downtown Vancouver in 2004.

The first CCGP will take place September 20th and 21st at the new and improved, River’s Edge Raceway. The CCGP concept was derived from the ultra-successful fan-favorite SCCBC Invitational that ran along with the Vancouver Indy from 1990 through 2004.

The SCCBC Invitational thrilled the Vancouver Indy crowds with its wheel-towheel racing action and fan-friendly format. Huge grids of up to 60 cars kept fans on the edge of their seats with lots of passing, close calls and diverse grids.

The CCGP will continue to feed the fans need-for-speed by featuring a vast array of beautiful P1 and P2 class, big-horsepower cars and amazing driving talent from all over Western Canada and the Pacific Northwest racing for a $10,000 prize purse.

The CCGP race will take place during round 4 of the Pacific Region CACC Championship. The weekend will also feature a variety of exciting classes from Open Wheel Formula Cars right through to Vintage and everything in between.

The Children’s Charities Grand Prix will benefit the BC Children’s Hospital and Children’s Wish Foundation. Partial proceeds from gate will go to both charities as well as funds raised from a silent auction and the infamous ‘Hot Laps 4 Kidz’. This unique offering will give fans the opportunity to go for a ride on the newly configured 9-turn 1.3 mile race track in a variety of Supercars and Race cars with Professional Drivers at the wheel.

This concept offers a fantastic opportunity to all those involved in Motorsports (and beyond) to come together to benefit sick children and demonstrate on a grand scale that great road racing action is alive and well in BC.

I am pleased to annouce that the Anduccis/RE/MAX racing car # 49, Panoz GTS will be competing in this event.

For further information please visit: http://www.sccbc.net/

Market Review

Month-over-month housing prices retreat from record highs.

VANCOUVER, B.C.
August 5, 2008

As property listings continue to outpace sales, Greater Vancouver housing prices have drawn back, the last two months, from the record highs experienced in early 2008.

Since May 2008, housing prices, as calculated by the MLSLink Housing Price Index®, across each residential category have declined. Detached properties in Greater Vancouver declined 2.3 per cent through June and July 2008, while attached were down 1 per cent and apartment properties 2 per cent over the same period.

The overall benchmark price for all residential properties in Greater Vancouver has declined 2.1 per cent since the end of May 2008, from $568,411 to $556,605 in July 2008. “We’re seeing more price reductions in properties listed on the market, which is having a levelling impact on the housing price increases experienced at the end of last year and into the first quarter of 2008,”said Real Estate Board of Greater Vancouver (REBGV) president, Dave Watt. “There was a slight decline in the total active listings on the market in July compared to June, which is a welcomed departure
from recent trends.”

Residential property sales in Greater Vancouver declined 43.9 per cent in July 2008 to 2,174 from the 3,873 sales recorded in July 2007. New listings for detached, attached and apartment properties increased 24 per cent to 6,104 in July 2008 compared to July 2007, when 4,924 new units were listed.

Sales of detached properties in July 2008 declined 44.2 per cent to 827 from the 1,483 units sold during the same period in 20070. The benchmark price for detached properties is up 5.4 per cent from July 2007 to $753,165.

Sales of apartment properties declined 42.3 per cent last month to 966, compared to 1,674 sales in July 2007. The benchmark price of an apartment property increased 4.7 per cent from July 2007 to $381,687.

Attached property sales in July 2008 decreased 46.8 per cent to 381, compared with the 716 sales in July 2007. The benchmark price of an attached unit increased 5.7 per cent between July 2007 and 2008 to $473,953.

Commercial Real Estate

Vancouver office space at premium. Vacancy rate lowest in
Canada with market that's going to get tighter.

Wendy McLellan
The Province
Wednesday, July 23, 2008

Vancouver's short supply of downtown office space means companies have to make longer-range plans if they want to expand.

Downtown office space is easier to rent in Tokyo than Vancouver.

It's also easier to find vacant office space in 84 other big cities in the world, according to a new real-estate report showing downtown Vancouver has the twelfth tightest office-vacancy rate in the the world. At 2.3 per cent, the city has the lowest downtown office-vacancy rate in Canada. Toronto has the second-tightest downtown office space with a 3.8-per-cent vacancy rate. Among big U.S. cities, Boston has the lowest rate at 6.6 per cent.

"If a company needs office space in Vancouver, they will have trouble finding options," said Pierre Bergevin, president and CEO of global real-estate firm Cushman and Wakefield LePage. "There is clearly not enough supply to meet demand." The company released the report on office-vacancy rates in the core areas of 97 cities worldwide, based on first-quarter statistics. Vancouver's short supply of desirable downtown office space means companies have to make longer-range plans if they want to expand, Bergevin said.

"Anybody who has space and needs to do something about it in the next three to five years will have to start looking now," he said. "This is a challenge for businesses that are expanding - they don't have a lot of options right now."
Tony Astles, executive vice-president of Bentall Real Estate Services, said a normal vacancy rate would be in the range of five to nine per cent. Rents for prime office space have been rising for more than two years and hit an all-time high late last year. "What most people haven't come to grips with is that even at this level, the rents aren't enough to induce new building construction. Construction costs are still higher," Astles said.

Residential towers are more profitable, and since building a new office tower takes about five years, developers are reluctant to take a risk on an uncertain future market. Instead, they are turning to the suburbs and building lower-rise office buildings on cheaper land near public transit.

"If tenants can't grow in Vancouver, they will move to other areas to achieve that growth, and that is already beginning," Astles said. "They are moving to more suburban areas of Vancouver, Burnaby, Richmond because there's no room."

Currently, there are no new office buildings under construction in the downtown core and only a couple projects in the discussion stage at city hall, Astles said. "If it was economically viable to build office buildings, they would be built," he said. "In the next five years, there will be few new buildings constructed and that means an even tighter market."

Market Update

Fewer Sales and Large Inventory Cool Housing Market.

Vancouver, BC – July 16, 2008.

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 34 per cent to $3.31 billion in June, compared to June 2007. Residential unit sales fell 36 per cent to 7,133 units during the same period. The average MLS® residential price in the province was $463,458, up 4 per cent from June 2007.

“Weaker consumer confidence and eroded affordability are slowing home sales in the province,” said Cameron Muir, BCREA Chief Economist.

Seasonally adjusted MLS® residential unit sales in June were near 2002 levels. During the first half of the year, BC MLS® residential sales were down 22 per cent to 42,907 units, when compared to the same period last year. The average residential price rose 9.6 per cent to $473,536 over the same period.

“The combination of a larger inventory of homes for sale and fewer home sales have tilted most BC markets in favour of homebuyers,” added Muir. “This means little upward pressure on home prices in many markets.” Victoria was in balanced conditions, while Northern Lights remained a sellers’ market in June. “Despite a dip in home sales, inventories could soon edge lower as home sellers adjust their asking prices to reflect market conditions.”

Mortgage News

New government rules put a crimp on mortgage borrowing.

Garry Marr
Canwest News Service
Thursday, July 10, 2008

TORONTO - The federal government has cracked down on the mortgage industry with new rules that will make it more difficult for consumers to borrow.

One of the key measures the government has introduced is a stipulation that insured mortgage products not have an amortization period that is longer than 35 years.In the past two years, the amortization period has stretched from 25 years to as much as 40 with some people suggesting a 50-year amortization was soon to come.

Any consumer with less than a 20-per-cent down payment on a home is required to get mortgage insurance if they are borrowing money from a financial institution covered by the Bank Act. The new rules affect those mortgages.
Another key measure being introduced is a requirement that all mortgages have at least a five-per-cent down payment. Competition in the mortgage industry has allowed consumers to put zero money down on a home and still get a competitive rate.

Canadian consumers have actually been borrowing more than 100 per cent of the value of their home. Many financial institutions allow consumers to put closing costs, which include land-transfer fees and legal bills, on their loan. It has led to mortgages that are about 103 per cent of the value of a home.

The government will also require anybody with an insured mortgage product to have a minimum credit score. It is also introducing new loan-documentation standards.

The mortgage-insurance industry is dominated by Canada Mortgage and Housing Corp., a Crown corporation that controls 70 per cent of the market. The other 30 per cent of the market is controlled by Genworth Financial Canada.

New entrants like AIG United Guaranty, a subsidiary of American International Group Inc. or AIG, and PMI Mortgage Insurance Co. have been trying to crack the market.

Market Review

Market activity offers awaited relief for homebuyers.

Vancouver, B.C. – July 3, 2008

Increased property listings and moderating home prices have eased the Greater Vancouver housing market into a buyer’s phase. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 42.9 per cent in June 2008 to 2,425 from the 4,244 sales recorded in June 2007.

New listings for detached, attached and apartment properties increased 18.3 per cent to 6,546 in June 2008 compared to June 2007, when 5,533 new units were listed.

“Although housing prices, on a year-over-year comparison, continue to show single-digit percentage increases, we are beginning to see more price reductions in properties listed on the market today,” said REBGV president, Dave Watt. “Homes priced at a competitive level continue to sell quickly, but it is important for people to accurately identify their home’s value when putting it on the market.”

Sales of detached properties in June 2008 declined 43.4 per cent to 918 from the 1,623 units sold during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 7 per cent from June 2007 to $765,654.

Sales of apartment properties declined 42.7 per cent last month to 1,057, compared to 1,846 sales in June 2007. The benchmark price of an apartment property increased 7.8 per cent from June 2007 to $388,722.

Attached property sales in June 2008 decreased 41.9 per cent to 450, compared with the 775 sales in June 2007. The benchmark price of an attached unit increased 7.6 per cent between June 2007 and 2008 to $476,585.

Bright spots in Greater Vancouver in June 2008 compared to June 2007:

Apartments:

New Westminster up 46.2 per cent (19 units sold from 13)

For Sale

I am pleased to announce the listing of 4321 Greta Street, Burnaby.

This is a rare opportunity to purchase a quality home located on a private cul-de-sac in South Burnaby. This 2 level, 5 bedroom home has many quality features including: bright large rooms, original hardwood floors, cedar lined closets,a finished basement with a large recreation room and plenty of storage, This home features attractive landscaping, a private back yard and a detached 2 car garage with lane access.

For further information please visit: http://www.danmccarthy.ca/

Market Update

Vancouver, BC – June 16, 2008.

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 27 per cent to $3.85 billion in May, compared to May 2007. Residential unit sales fell 31 per cent to 8,101 units during the same period. The average MLS® residential price in the province reached $475,656, up 6 per cent from May 2007.

“Rising fuel and food prices are impacting the housing market, as many potential homebuyers take a wait and see approach out of concern for their household budgets,” said Cameron Muir, BCREA Chief Economist.

While BC has one of the best performing economies in the country, slower economic growth and a spate of bad news stemming from the US housing recession is also eroding consumer confidence, causing some consumers to delay major purchases.

“Despite strong demographic fundamentals, amenity markets in the province are bearing the brunt of reduced demand as second home purchases by recreation and investor buyers are more easily delayed,” added Muir. “However, higher inventory levels may soon edge lower as homes priced in relation to the accelerating conditions of the past are either pulled off the market or re-priced and sold according to today’s market realities.”

Recreational Property

Balance returns to recreational property markets across Canada this year, says RE/MAX.

Kelowna, BC
June 10, 2008

After an extended period of extraordinary growth, more balanced market conditions have emerged in recreational property markets across the country, according to a report released today by RE/MAX. The RE/MAX Recreational Property Report found that a substantial increase in the supply of recreational properties listed for sale, combined with fewer buyers overall, characterized most recreational markets this year.

Of the 45 markets surveyed, 91 per cent (or 41 markets) were in the transition stage, moving from strong sellers into balanced market conditions. The only exceptions were Salt Spring Island, two markets in Saskatchewan - Last Mountain Lake and Qu’Appelle Lakes and Lakes Candle, Emma, and Waskesiu - and Newfoundland’s East Coastwhere inventory levels were relatively low.

Affordability was a primary factor in 35 per cent of markets surveyed, given serious upward pressure on recreational values in recent years. “We’re coming off the longest period of economic expansion since World War II,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Recreational property values have appreciated beyond our wildest dreams across the country. More balanced market conditions are a welcome change for purchasers.”

Adverse winter weather conditions during the first four months of the year hindered recreational activity. Sixty-seven per cent of markets reported softening in the number of sales year-to-date, while average prices remained stable or experienced moderate increases over 2007 levels for the same period. Economic concerns, fueled by negative GDP growth in the first quarter and soaring energy costs, have also played a role in the transitioning market.

“Market conditions have shifted, but don’t expect to see bargain basement prices or fire sales,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “The recreational market continues to experience solid demand - a trend that is expected to continue throughout 2008. The influx of new listings has yet to translate into downward pressure on recreational property prices. Prime waterfront properties, while more plentiful than in year’s past, will still command top dollar.” For the first time in many years, in fact, a good selection of entry-level waterfront is available in markets across the country.

Eighteen per cent of those surveyed offer properties under the $200,000 price point, including; Central South Cariboo in British Columbia; Parry Sound, East Kawarthas and Kingston in Ontario; Summerside, PEI; South Shore, Nova Scotia; Shediac, New Brunswick; and the East Coast of Newfoundland. Recreational property buyers also found themselves divided between two borders this year. The housing market meltdown in the US combined with a Canadian dollar at par created serious investment opportunities for secondary properties in Florida, Arizona, Texas, and California. Some of those very same factors have spurred American recreational property owners in Canada to list their properties for sale, with many looking to take advantage of ideal market conditions here. “Many Canadians are capitalizing on market conditions in major American centres,” says Polzler.

“For some purchasers, the move is strictly a short-term investment strategy with a pay-off at the end of the day, while for others, retirement is the main objective.” The report also found that younger buyers were a factor in 40 per cent of recreational markets surveyed. “Baby boomers are clearly not the only purchasers that appreciate the recreational lifestyle,” says Ash. “Generation X is quickly becoming a force in the marketplace, spurring demand for condominium product on ski hills, oceanfront properties in good surf locales, and water frontage on trendy lakes with celebrity residents.”

Other highlights: Alberta’s red-hot economy has helped boost recreational property markets in British Columbia, Atlantic Canada, and some parts of Ontario. Affordability is prompting buyers to consider back lots, riverfront, condominiums, hobby farms and leased land. -Some purchasers looking to secure an exit strategy are buying recreational properties or secondary homes in residential neighbourhoods in close proximity to the water’s edge.

Commercial Real Estate

Vancouver's commercial downtown goes up and out to create job space. City planners are proposing that residential development be banned from an expanded area.

Frances Bula
Vancouver Sun
June 06, 2008

Vancouver is about to radically reshape its downtown business core to create new commercial office space and keep condos at bay.

City planners are proposing that residential development be banned from an expanded new commerical district, that office towers automatically be granted 20 to 40 per cent more density, and that developers be encouraged to build as high as possible without blocking the city's designated view corridors. "When you look at the capacity for job space in the city, there's a problem, particularly in the downtown," said planner Kevin McNaney, who is in charge of the city's massive metro-core jobs study that has been examining what kinds of occupations and locations the city will need in the future. "And it really has nowhere to go but up. There's heritage on one side, strata condos on the others and then the port."

The city is also proposing that all conversions from office to residential in buildings over 50,000 square feet will be discouraged through the new central business district, which will now stretch from Bute to Beatty and Robson to Cordova. Similarly, conversions of buildings over 30,000 square feet in Yaletown, Chinatown and Gastown will also be discouraged.

That change is being welcomed by the business community, which has been raising the alarm for a couple of years about the way office development has been losing the battle to more profitable condo development.
"It's all good to walk and bike to work, but if you don't have offices for people to go to, that makes things rather difficult," said Bernie Magnan, the chief economist for the Vancouver Board of Trade. "You won't have the business and the jobs that you're asking people to move down here for."

Condominium development in the downtown core has been escalating for 20 years, ever since the city started promoting a "Living First" policy of encouraging people to move downtown. It took off in the late 1980s, after the office market collapsed in Vancouver and elsewhere and developers were looking for new opportunities to build. Since then, the size of the downtown population has more than doubled to about 90,000.

As it became clear that condo projects were selling at phenomenal rates and available sites became less and less available, residential developers started pushing into the central business district or converting former office buildings. The famous one-time Westcoast Transmission building on Georgia became the Qube condos, while prime sites, one at Georgia and Thurlow and one at Dunsmuir at Granville, were developed as the Shangri-La and Hudson, which were all or partly condos.

The city put a moratorium on that kind of conversion and development almost four years ago, because of increasing concern about the effect it was having on the price of the remaining commercial land. In the meantime, the office vacancy rate downtown has dropped to a record low.

City planners have estimated that the downtown needs about six million square feet more of office space to accommodate an increase from the 120,000 jobs that now exist downtown.

McNaney said the city will also be making changes in other parts of what it calls the metro core - everything north of 16th Avenue from Clark to Arbutus - to create more job space. He said that it's unlikely that Vancouver will see exceptionally high office towers because the business market in Vancouver isn't strong enough for that. Vancouver has no head offices and much of its office space goes to companies leasing relatively small amounts of space.
"Most will be around 400 to 450 feet. That's enough for the kind of office towers built here," said NcNaney.

Market Review

Growing supply helps stabilize market conditions

VANCOUVER, B.C. – June 3, 2008
The Greater Vancouver housing market continued its re-balance between sales and listings last month. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 30.7 per cent in May 2008 to 3,002 from the 4,331 sales recorded in May 2007.
New listings for detached, attached and apartment properties increased 20.2 per cent to 7,390 in May 2008 compared to May 2007, when 6,149 new units were listed.

“With more property listings and a decline in the number of sales, prices are not increasing as rapidly, now down to single digits overall, which is good news from an affordability standpoint,” said REBGV president, Dave Watt. “The housing market is at a balanced state, sellers have more competition and buyers have more selection to choose from."

Sales of detached properties in May 2008 declined 33.4 per cent to 1,203 from the 1,805 sales recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 8.4 per cent from May 2007 to $771,250.

Sales of apartment properties declined 30.5 per cent last month to 1,244, compared to 1,789 sales in May 2007. The benchmark price of an apartment property increased 8.7 per cent from May 2007 to $389,668.

Attached property sales in May 2008 decreased 24.7 per cent to 555, compared with the 737 sales in May 2007. The benchmark price of an attached unit increased 9 per cent between May 2007 and 2008 to $478,931.

Bright spots in Greater Vancouver in May 2008 compared to May 2007:
Attached:
Coquitlam up 45.2 per cent (45 units sold from 31)
Apartments:
New Westminster up 13.6 per cent (100 units sold from 88)