Renovations

How to avoid home reno disaster.
There are enough snags without creating any of your own.

Paul Luke
The Province
May 25, 2008

Contractor Robert Capar oversees a complete condominium renovation. Here he talks with Darren Reidel as he installs a header. Capar suggests homeowners be wary of contractors whose quote is dramatically lower than the rest.

Here's some fail-safe advice for smart homeowners who want to do a renovation fast and cheap.

1) Strike a verbal deal with the lowest-cost builder who comes along.
2) Pay cash under the table.
3) Keep your plans loose so you can improvise as you go along.
4) Better yet, do all the renovating yourself. You can cover your tracks at the office if the job pulls you away a few hours a week.
5) Don't worry about permits and inspections from your municipality - they're for fools.

Congratulations - you've just turned your dream project into a nightmare.

Earlier this month, speakers at a seminar organized by the Greater Vancouver Home Builders' Association outlined disasters that await careless or ethically relaxed households. "Renovations are notorious for growing and changing as the project keeps moving along," renovator and Kelrek Services boss Alvin Epp told those at the seminar.

"There's always something in a renovation that doesn't seem to work quite the way you want." Looking to turn hiccups into screwups? Here's some guidance from professionals at the seminar.

Support underground economy. Cash deals that lack liability insurance and WorkSafe B.C. coverage put homeowners at enormous risk, home builders association CEO Peter Simpson said.
"Without a building permit and the requisite inspections, you're really exposing yourself," Simpson said. "If anything goes to court, you, as the homeowner, are deemed to be the contractor."

Dan Moseley, a lawyer with Surrey-based McQuarrie Hunter, said all agreements should be in writing. Key elements to anticipate are delays and disputes. "There should always be a term in the contract or agreement which sets out a very simple process for dealing with extras, additions or changes," Moseley said. "Alternative dispute resolution, mediation and arbitration should be considered."

Always choose the lowball price. Contractor Robert Capar, president of maison d'etre construction, said homeowners should be wary of a contractor whose quote is drastically lower than the rest. "Make sure you're getting a price for the same job - the same look, the same quality, the same materials," Capar says.

CCI Renovations president John Friswell said homeowners should not base the cost of an item on a price they see in a store. A builder's markups include indispensables such as planning, delivery and installation. These may translate into markups of 25-50 per cent, depending on the job. "If you get a contractor quoting you 10 per cent, be very careful," Friswell warned. "Because that contractor is not adequately covering his costs if he has a legitimate business." Friswell tells clients to build a cushion of 10 to 20 per cent into their budget to cover changes and unforeseen costs.

Don't bother with a professional. Homeowners able to handle the practical parts of doing a big reno must also be prepared to cope with the demands on their time, Capar said. "When you're running a project, it's not uncommon to find that it's taking two to three hours a day. You can do it yourself, but you'll take on all the risk, all the liability.
"So trying to hold down a full-time job and run a project at home is not necessarily going to be the easiest thing to do."

Keep cards close to your vest. Homeowners should be upfront during initial talks with builders about how much they can spend on a project, Capar said. "Give them a sense of the budget," he said. "That's going to tell me the kind of finishing you're thinking about, what kinds of details you're probably going to be putting into that project."
Homeowners also need to be clear about their timelines. Pregnancies are one of the single greatest triggers for renovations in Vancouver, Capar said. "If the baby's due in three months, make sure that's clear," he said. "Because if [a builder's] schedule is eight months out, you should know that so you can eliminate each other."

Fly by the seat of your pants. Interior designer Daine Halley said people must do their homework and build up enough knowledge to survive the blizzard of design decisions. "Make a plan and stick to it to keep a project from becoming a reno horror story," the owner of Comet Interior Design said.

For further information on renovations please visit:
http://www.remax-western.ca/3012_advice_ideas_tips.html

Market Update

More Homes for Sale - Welcome News for Homebuyers.
Vancouver, BC - May 14, 2008.

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC dipped 1.4 per cent to $4.1 billion in April, compared to April 2007. Residential unit sales declined 11 per cent to 8,623 units during the same period. The average MLS® residential price in the province reached $478,044, up 11 per cent from April 2007.

“Rising inventories are providing more choice for consumers and exerting less upward pressure on home prices,” said Cameron Muir, BCREA Chief Economist. Active MLS® residential listings in the province were up 37 per cent to 47,923 units in April. “The combination of a slower pace of home sales and some profit taking by investors is contributing to a balance between housing demand and the supply of homes for sale.”

“While homebuyers now face less competition for the homes available for sale,” added Muir, “competition among home sellers means curb appeal, interior condition and prudent pricing are necessary for faster sale.”

In the first four months of the year, MLS® residential sales volume in the province fell 1.8 per cent to $13.2 billion compared to the same period in 2007. Residential unit sales declined 13 per cent to 27,730 units, while the average MLS® residential price increased 13 per cent to $474,993.

Residential Construction

Builders strongly back Victoria's plan to raise the maximum height of wood-frame apartments.
Aim is to encourage more use of timber by allowing buildings up to six storeys.

Gordon Hamilton
Vancouver Sun
Tuesday, May 13, 2008

A plan by the province to raise the maximum height for wood-framed apartment buildings to encourage more use of the province's timber is receiving strong support from builders.

Premier Gordon Campbell told mayors attending a Whistler convention last week that he wants to support the province's forest industry by allowing the construction of wood-framed condominiums higher than the current four-storey limit.

And Housing Minister Rich Coleman told the Canadian Home Builders' Association two weeks ago that he wants to see wood-framed building up to six storeys high. "We want to be responsive to market changes," he said April 30. "One of the initiatives is we want to build a higher building out of wood. We want to go to six storeys." Coleman said the necessary building code changes could be accomplished through regulatory change and could be in place by September.

B.C. is already pushing the limit under the National Building Code by going as high a four-storeys in wood, said architect Richard Kadulski, but going higher, is do-able, he said. "The construction industry here is very comfortable with wood," he said. However, higher condominiums could bump up against municipal zoning regulations that govern building heights, he said.

Neil Chrystal, president of Polygon Homes, said if the limit were raised, Polygon would go for more height in wood. It could lead to new, more varied building designs, he said. Polygon builds with both concrete and wood. "It could lead to increased densities where it makes sense and typically wood-framed buildings are somewhat more affordable to build, so you are addressing the affordability issue also. It's a double win," he said
.
Wood-framed construction has been limited to three storeys under the National Building Code - B.C pushed it to four storeys - for technical reasons. Specifically any shrinkage in the thickness of floor joists tends to compound with each additional storey. But new technologies, such as engineered wood, can resolve those issues, said Victoria builder Herman Rebneris of Cottage Grove Contracting. Rebneris is an advocate of going beyond four storeys. He said both Seattle and Portland allow five-storey wood-framed condos, going to six if the first floor is concrete. In Europe, wood-framed condos can be up to eight storeys tall, he said. "I think there is an opportunity here. Wood-framed buildings are cheaper and they are made from sustainable products."

Peter Simpson, chief executive officer of the Greater Vancouver Home Builders' Association, said he has travelled to Asia promoting wood-framed construction. It makes sense to promote greater use of wood in B.C. construction because it's a local resource, he said.

SOLD

I am pleased to announce the sale of # 106 - 1169, 8th Avenue, New Westminster, for further information please visit:

www.danmccarthy.ca

Market News

Vancouver residents love their condos.
But only as an investment rather than a primary residence, TD Canada Trust says.

Bruce Constantineau
Vancouver Sun; with Canwest News Service
Thursday, May 08, 2008

More than half of Vancouver residents surveyed would buy a condo as an investment rather than as a primary residence - the highest level in Canada, according to a TD Canada Trust online survey.

The survey found that 52 per cent of Vancouverites would make a condo investment, compared with 38 per cent of 1,200 residents polled in six Canadian urban centres - Vancouver, Calgary, Toronto, Ottawa, Montreal and Halifax.

Vancouver residents are also the most likely among urban Canadians to pay between $400,000 and $600,000 for a two-bedroom condo - with 24 per cent saying they would pay that much, compared with just 13 per cent of urban Canadians in general.

The survey found that 48 per cent of Vancouver residents are willing to raise a family in a condo, up from 34 per cent who said they would consider it last year. Condos are increasingly becoming urban Canadians' residences of choice, as the lure of low maintenance and affordability boosts the number of potential buyers.

Forty-eight per cent of city - dwelling Canadians said they would consider buying a condominium as their primary residence, up significantly from the 39 per cent recorded a year ago.Reasons for that interest vary widely across the country, as do the prices buyers are willing to pay.

"While affordability is still the main driver for many first-timers, the condo market today offers so many options and amenities - including highly energy efficient buildings that it is commanding the attention of a much wider range of potential buyers," said TD Canada Trust representative Joan Dal Bianco.Less maintenance than a house was a key factor for 34 per cent of respondents, while 23 per cent said a cheaper price would be their main reason to make such a purchase.

Energy efficiency is also a growing attraction for condo buyers, 96 per cent of whom said it would be a top amenity they seek, equalled in popularity by only good building security. Low condo fees were another top priority for 94 per cent of those polled. Almost half of respondents said they were willing to pay no more than $400 a month in fees, while 36 per cent said they would pay no more than $200.

Nationally, 52 per cent said they want to spend less than $400,000 to buy a two-bedroom condo, and 28 per cent said they want to spend less than $200,000. All of which reveals a large gap between people's expectations and the prices they'll encounter when they go shopping.

"There are still locations where you can a $150,000 condo," Dal Bianco contends, while adding such properties may be older buildings that lack amenities. She concedes that "in the large major cities, in particular Calgary, Toronto and Vancouver chances of finding something under $200,000 are probably pretty slim."
The online survey was conducted by Angus Reid Strategies between March 20 and March 25 and the national sample is considered accurate to within 2.9 percentage points, 19 times out of 20. The Vancouver sample is considered accurate to within 6.9 percentage points.

Market Update

BC Housing Markets to Moderate
BCREA Releases Spring 2008 Housing Forecast Vancouver, BC – May 6, 2008.

BC home sales are retreating from historically high levels, according to the British Columbia Real Estate Association’s (BCREA) spring Housing Forecast, released today. The report analyzes the British Columbia economy and housing markets, including detailed forecasts by home type of the province’s 12 real estate board areas.

“Some weakness on the export side of the economy and eroding affordability will have an impact on housing demand over the next two years,” said Cameron Muir, BCREA Chief Economist.

Residential sales on the Multiple Listing Service® (MLS®) are expected to decline 9 per cent to 93,800 units in the province in 2008, and a further 2 per cent to 92,000 units in 2009. “Most housing markets in the province are exhibiting balance between demand and supply,” added Muir. Home sales were down 14 per cent in the first quarter of 2008, while active listings were up 24 per cent. “More balance between demand and supply means less upward pressure on home prices. It also reduces the chance of multiple bids on the same home, giving homebuyers more time to investigate properties thoroughly before purchasing.”

The average MLS® residential price in the province climbed 12 per cent to $438,975 in 2007. This year, the average MLS® residential price is forecast to increase 9 per cent to $479,000, and a more modest 4 per cent to $499,000 in 2009. “While a weak US economy is negatively impacting the forest industry and tourism, the BC economy is forecast to grow 2.5 per cent this year and 2.7 per cent in 2009, a higher rate of growth than most other provinces. Consumer spending, employment growth and net migration in the province are expected to remain robust and will continue to underpin housing demand through 2009,” noted Muir.

RE/MAX Quest for Exellence

RE/MAX Awards $12,000 in Bursaries to High School Graduates

Kelowna, BC (May 5, 2008) – Twenty four students from Western Canada were recently notified that they will be individually presented with a RE/MAX 2008 ‘Quest for Excellence’ bursary, valued at $500, during their school commencement ceremonies.

The annual RE/MAX Quest for Excellence program encourages graduating students from British Columbia, Alberta, Saskatchewan, Manitoba, and the North West and Yukon Territories to write an essay based on their personal experience in one of six topics – Leadership, Sports, Technology & Trades, Performing Arts, Fine Arts and Community Service.

“A record breaking 1568 entries were received from students across Western Canada,” says Marie Sheppy, Senior Coordinator, Corporate Affairs, RE/MAX of Western Canada. “Each year, the caliber of essays we receive far exceed our expectations. These young adults are sure to succeed in their chosen field and we are pleased that we can help fuel their achievements.”

“In the spirit of giving back to our communities, we take pride in knowing that RE/MAX can help students reach their education goals”, says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “We hope that the bursary program encourages the applicants to continue to strive in their Quest for Excellence”

Quest for Excellence Award Winners are as follows:

Leadership Category – Alyssa Anderson, Lloydminster, SK, Carmen Danyluk, Kamsack, SK, Matthew Roy, Victoria, BC, Gladys Yeung, Winnipeg, MB

Sports Category – Taylor Gordon, Kamloops, BC, Kieran Halliday, Parksville, BC, Gabrielle Hodgson, Vancouver, BC, Kait Serafin, Vernon, BC

Technology & Trades Category – Joshua Craig, Westbank, BC, Dallas Hale, Delta, BC, Donna Shuman, Victoria, BC, Brittany Wall, Brandon, MB

Performing Arts Category – Jing Cheng, Delta, BC, Michelle Huie, Calgary, AB, Bernice Pui, Edmonton, AB, Matthew Zimmerman, Steinbach, MB

Fine Arts Category – Denay Amaral, Kitimat, BC, Callan Field, Calgary, AB, Natasha Ivanovic, Surrey, BC, Janyne Laing, Gallivan, SK

Community Service Category – Salina Haramsi, Vancouver, BC, Neil Kalra, Saskatoon, SK, Kelsey Phillips, Edmonton, AB, Celia White, Nanaimo, BC

RE/MAX is Canada’s leading real estate organization with over 17,800 sales associates situated throughout its more than 638 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 35th year, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage over 110,000 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. For more information, visit: www.remax.ca

Market Review

New listings outpace sales to start the spring cycle.
VANCOUVER, B.C. – May 2, 2008

An influx of new listings entered the Greater Vancouver housing market in April 2008, while residential sales reduced slightly compared to the same period a year ago. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 3,218 in April 2008, a decline of five per cent from the 3,387 sales recorded in April 2007, and a 3.8 per cent drop from the 3,345 sales in April 2006. New listings for detached, attached and apartment properties increased 25.6 per cent to 7,010 in April 2008 compared to April 2007, when 5,580 new units were listed.

“Residential sales continue to be strong, but there is a lot more choice on the market today. This is good news for a market that has been defined by record-breaking activity for most of this decade,” said REBGV president, Dave Watt. “Despite this seeming re-balance between sales and listings, it took, on average, six fewer days to sell a home in Greater Vancouver compared to the previous year, with a days on market average of 33 in April this year,” said Watt.

Sales of detached properties declined 7.8 per cent to 1,293 from the 1,403 detached sales recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 11 per cent from April 2007 to $771,321. Sales of apartment properties in April 2008 declined 2.4 per cent to 1,317, compared to 1,350 sales in April 2007. The benchmark price of an apartment property increased 9.6 per cent from April 2007 to $389,070. Attached property sales in April 2008 are down 4.1 per cent to 608, compared with the 634 sales in April 2007.

The benchmark price of an attached unit increased 10.5 per cent between April 2007 and 2008 to $477,900.

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

ATTACHED:
Squamish...................................... up 84.6 per cent (24 units sold from 13)
Vancouver East ............................... up 50 per cent (51 units sold from 34)
Sunshine Coast................... up 157.1 per cent (18 units sold from 7)

APARTMENTS:
Maple Ridge/Pitt Meadows ......... up 32.3 per cent (41 units sold from 31)
New Westminster .................... up 33.8 per cent (95 units sold up from 71)
Port Moody/Belcarra............... up 23.7 per cent (47 units sold up from 38)
Richmond...................................up 7.8 per cent (179 units sold from 166)