vancouver real estate

Kristi Holz Market Update

June 2020 Vancouver Real Estate Update

Hi Everyone!! I hope you’re taking care of your self, physically and mentally, given everything going on. If you’re healthy, I hope you’ve gotten out to support local businesses now that many have opened their doors again to semi normal interactions – restaurants, shops, extended health care providers, and the cosmetic industry can all use your support right now. We are so lucky to live in BC, which has experienced one of the lowest death tolls due to Covid in North America. All showings and Open Houses still require proper precautions – masks hand sanitizer, gloves, sometimes shoe covers. I imagine these precautions will continue for awhile. 

The market has continued to be busy throughout May. Overall, the number of listings and sales is still a lot lower than normal, but the percentage of sales compared to listings is still quite strong, which means the market is active for Buyers and Sellers looking to make a move. Well priced listings continue to sell, often in multiple offers. I’m seeing a lot of activity on entry level condos, family sized strata properties, detached houses on the Eastside and Westside and lots for developers, so there is certainly a lot of confidence in the future of the market! 

Meanwhile, there are still some units that sit on the market. These units don’t have that big draw that really brings Buyers in (whether that’s a sharp price, great renovations, a great patio, being in great building, ideal location, etc) and these units tend to sit on the market. I find there’s a lot of psychology involved – if a unit has sat on the market for a couple weeks, everyone is going to assume it’ll still be on the market later, so Buyers wait for new and better properties every week, thinking they can circle back to the unit still on the market. Depending on the situation, there can be some good reason to submit a low offer to get a sense of the Seller’s motivation and to get a unit for a better price (which might covers the minor renovations needed to make it feel more like home). If you find yourself losing in multiple offers, circle back to the units that have been sitting on the market and really think about them as a possibility (at the right price!). 

As far as I’m aware, the moratorium on tenant evictions and showings is over as of June 9th, which means it makes sense again for landlords to consider selling their units. I imagine we’ll see an increase in inventory now that tenants can be evicted if an end user buyer purchases a property

With travel restrictions still in place and weddings cancelled for months, I still believe the real estate market is going to continue to be busy in the summer and through the Fall, so keep following the market! You never know when that great place will hit and prepared Buyers are the ones who find the best properties or the best deals.  

Onto the stats. 

Vancouver East Real Estate Stats

– The HPI Price has remained steady for another month, which shows some stability in the market since February. Prices are ever so slightly higher than this time last year with detached houses at $1,447,800, townhouses at $905,000 and condos at $595,300. 

– The amount of inventory is down 44% in the detached market and around 33% in the condo and townhouse market which is a big change in inventory when the inventory numbers last year were still down compared to previous years! 

– Though the market certainly feels active, the sales to active ratio is down 7% in the detached market and over 20% in the condo and townhouse markets, which reinforces the idea that good properties are selling, while others sit on the market.

HPI Price for East Vancouver

*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House

Median Percentage of Original Price for East Vancouver

New Listings for East Vancouver

Total Inventory for East Vancouver

Total Sales for East Vancouver

Sales to Active Ratio for East Vancouver

Median Days on Market for East Vancouver

Vancouver West Real Estate Stats

– The HPI Price remained steady for condos and townhouses, but is showing a slight increase in the detached market. Prices are slightly higher now than they were at this time last year, with condos at $801,000, townhouses at $1,125,000 and detached houses at $3,041,000. 

– The amount of inventory has been increasing for condos, and ever so slightly decreasing for townhouse and condos. Inventory numbers are down 30-40% compared to this time last year, though May of last year saw very high numbers compared to the previous few years. 

– The sales to active ratio for condos and townhouses is similar to what it was last year, but the sales to active ratio for condos is down 20%, so there is less interest than last year. 

HPI Price for Vancouver West

*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House

Median Percentage of Original Price for Vancouver West

New Listings for Vancouver West

Total Inventory for Vancouver West

Total Sales for Vancouver West

Sales to Active Ratio for Vancouver West

Median Days on Market for Vancouver West

If you want to chat through your options, best path forward and the intricacies of the market, let me know! I’m happy to jump on a call to get you started. It takes some finesse to handle a buy and sell, so make sure you know your options before jumping in. If you’d like to slowly dip your toes in the market, I can also set you up on a Custom Real Estate Search so feel free to contact me: kristi@realestatevancity.ca or 778-387-7371 to let me know what you’re looking for in a new home.

This kind of market leads to a needed reminder for Sellers – you need to ensure your property looks good, is priced right and has an agent truly trying to sell it. Contact me to talk about the best plan of action for the sale of your home – you need good marketing, positive viewings, market knowledge and strong negotiation.

Sending you health and happiness. Support Local!!!!

– Kristi, contact me at kristi@realestatevancity.ca or 778-387-7371

Kristi Holz FAQs

What are Leasehold Properties in Vancouver?

There are a few different types of ownership of Vancouver real estate, with the most common being: Freehold, Leasehold, and Co-op.

You may have noticed surprisingly cheap properties in the West End, SE Vancouver and near Granville Island. Well, there’s a reason for it! Many of these properties are either Leasehold or Co-op, which don’t offer owners the same ownership rights as a Freehold unit, hence the discount!

A Freehold unit is where a person owns the unit and the land. This owner is allowed to do what they want with the property as long as those desires follow City regulations. In the case of a Strata (Condo) property, you own your unit and share the common spaces and land with the other owners, pursuant to the official Strata Plan, and are required to follow the Strata Bylaws regarding management, maintenance, use and enjoyment of the strata units and common property.

A Leasehold unit is where a person purchases, from the owner of a building or a lot, the right to occupy a condo, house or lot for a defined period of time (more than 20 years, and usually for 99 years). The lease agreement stipulates the terms and conditions for both the Leaseholder and the Leasehold Land Owner. The Leaseholder is allowed to sell their interest in the property, where the new owner will be accepting the remaining lease terms and conditions and building maintenance. Leases can be “Pre-Paid” or “Not Pre-Paid” and “Strata” or “Non Strata”.

Below is a quick description of Leasehold units:

Leasehold Land in Vancouver

In essence, leasehold land is a plot of land that has been rented out for certain period of time. The length of the original lease is often 100 years, but it can be as short as 20 years. Leaseholds can apply to lots, houses and apartment complexes. The owner of the Leasehold land sells the right to exclusively use a unit and the land it’s sitting on for a certain period of time, with certain requirements of the Land Owner (Leasehold Land Owner) and Purchaser (Leaseholder) that are stipulated in a Lease Agreement.

The Leaseholder who purchases the right to use the property also pays for the property taxes and maintenance/repair of the unit/building. When it comes to multi-unit buildings, these fees are typically paid through monthly fees and special levies when costs over and above standard maintenance.

Leasehold buildings can be classified as “Strata” or “Non Strata”. Strata leaseholds still follow the BC Strata Property Act which stipulates how the building can be managed and gives owners the right to vote for new bylaws, budgets or building maintenance plans. City of Vancouver Leaseholds are typically Strata, as are many of the newer buildings on First Nations Land. Non Strata leaseholds are buildings that are run by a Corporation that makes all the decisions on your behalf, which is common in the West End. You don’t have a say in rules, budgets, building maintenance or costs, but are still required to follow whatever they decide and pay for any required maintenance.

Leasehold properties can have leases that are pre-paid or non pre-paid. Units sitting on pre-paid leasehold land will be more expensive than units in non pre-paid buildings because the person selling you the Leasehold unit will have already paid the remaining lease amount, which the new purchaser will be taking over. Leases on non pre-paid land are often a bit more uncertain. Leases that are not pre-paid (often on First Nations Land though there are some City of Vancouver near Granville Island) means homeowners have a monthly lease payment in addition to strata fees, taxes, maintenance, etc. Depending on what the lease agreement says, the land owner on non pre-paid leasehold land can raise lease payments at different intervals and for varying amounts.

The value of pre-paid leasehold units tends to decline as the lease term approaches its termination date, but will fluctuate over time with market values. What happens at the end of a lease can be quite uncertain, so the closer you are to the end of the lease, the less the property is worth.

Be cautious with leasehold developments if you aren’t familiar with the lease details or the Land Owner. Make sure you understand the type of lease, the lease terms and conditions and any rules and regulations.

Where Can you Find Leasehold Land in Vancouver?

FALSE CREEK: The City of Vancouver owns the leasehold land in False Creek near Granville Island (the end of lease is typically between the years ~2030 and ~2046). These leases are typically Pre-Paid Strata Lease, but some buildings are not pre-paid. The units are typically townhouses and condos built in the 1970’s. Note that the City of Vancouver is in the process of offering the False Creek Leaseholds a 20 year extension – whether or not it is accepted is up to individual owners (as of January 2023). Please see the “RePlan Strata Leaseholders Society Website HERE for current updates.

SE MARINE / CHAMPLAIN HEIGHTS: The City of Vancouver owns the leasehold land in South East Vancouver – typically townhouses in Champlain Heights and townhouses and condos along the Fraser River (the end of lease is typically between the years ~2070 and ~2095). These leases are typically Pre-Paid, Strata leases.

WEST END: Much of the leasehold land in the West End is owned by a few different Corporations, and are Non-Strata leases, and typically Pre-Paid to the end of 2073. The units are typically units in high rise concrete condo buildings built in the 1970’s.

UNIVERSITY LAND: UBC has Pre-Paid (typically to ~2102 though it varies), Strata leasehold land owned by the University. These leaseholds are considered the most “safe” when it comes to leaseholds because of their age (generally quite new) and purpose (housing for students, researchers and faculty). The types of units vary from condos to townhouses.

WESTSIDE: First Nations bands own land on the Westside, not Pre-Paid and Non Strata, which is often in the form of houses, typically built in the 1960’s and 1970’s. Leases and lease payments are expected be reviewed in 2035 and 2055. These units can be hard to finance.

NORTH VANCOUVER: First Nations bands owns land in North Van, typically in Roche Point. These are typically Pre-Paid Strata units in the form of condos and townhouses, and are generally pretty new.

What happens at the end of a Pre-Paid lease on Leasehold land?

Leasehold land is cheaper than freehold land (when comparing similar neighbourhoods and properties), and for good reason. Leaseholders don’t own the land, and thus won’t get a share of any increase in land value (the value of the land is a big reason why Vancouver Real Estate so expensive).

If the lease on your building is nearing its end of term, you won’t be able to say with any certainty whether it will be renewed, and if so, the cost of the new lease payments once rising land values have been factored in, which is why there is a lot of uncertainty!

If the lease is renewed, Leaseholders will have to pay the new lease costs which might be a monthly fee if it’s Non Pre-Paid, or a significant amount of money if it’s Pre-Paid (though if Leaseholders pay for a new Pre-Paid lease, the unit’s market value will immediately jump given the new level of certainty a long lease offers). If the lease is not renewed, leaseholders will have to move at the end of the lease. Some – but certainly not all – lease agreements require the land owner to pay the leaseholders the fair market value of the building (which is typically not worth much since most of the value is in the land). The payout will be low compared to other nearby freehold properties so leaseholders won’t be able to buy a similar unit on freehold land with their payout. Review the Lease Agreement to understand what happens at the end of the Lease.

Think of the land near Granville Island.. That’s fantastic, waterfront land near the burgeoning Olympic Village. If the City takes the land back they could either build new, taller developments or sell the land to Developers for a huge profit to bring in millions for the City’s budget. Though homeowners can fight the decision, it would be well within the City’s right to take the land back and sell it (this is why they leased the land in the first place!). Leaseholders in False Creek were successful in decreasing a significant increase in lease payments in False Creek a few years ago (the City increased lease payments to match the value of the land in Olympic Village, which leasehold owners argued wasn’t fair). Leaseholders in Granville Island have a committee set up to begin pre-negotiations with the City regarding the nearing end of term of the leasehold units in the area (go HERE for current updates).

Financial Implications of Leasehold Land

The advantage is that leasehold units are cheaper to buy than freehold units, but there are disadvantages.

The uncertainties of leasehold properties can make them less than ideal investments. They generally take longer to sell since there are fewer Buyers interested in this type of property, and as the lease moves towards its end of lease years, the property value can decrease and/or be harder for prospective buyers to finance.

Not every lender will lend on a Leasehold property, but some major banks (HSBC is one option) as well as some private lenders will still offer a mortgage. Buyers typically need to have a good financial record and often a larger down payment. Mortgage Lenders will only amortize a Leasehold property based on the number of years left on a lease, which can increase the monthly payments if the lease only has a few years left. Having said that, rules change and individual financial situations differ so speak with your Mortgage Broker about your options. I’m happy to provide a referral if you would like to speak with a Broker who can finance Leasehold properties.

Property Transfer Tax is charged to Buyers of leasehold units, as Owners are typically registered on Title through the Land Title Office. Property Transfer Tax may be exempt depending on how long is left on the lease – contact the provincial PTT office for more information.

At this time, Vancouver’s Empty Homes Tax and BC’s Speculation and Vacancy Tax are NOT charged on the corporately owned West End Leasehold, though this information may be out of date and should not be relied upon. Please contact the City and the Province, or a Tax Lawyer, for current information if you’re thinking of buying a West End Leasehold unit.

Buying a Leasehold Property

If lifestyle factors like being close to work or living in a beautiful area (i.e. near the Vancouver Seawall) are most important, leaseholds could be a great option for you. Ideally you’ll want to buy into leasehold properties that have a long lease remaining though every Buyer’s situation and intention for the property deserves some consideration.

I often suggest Leasehold units for people who are looking to rent the unit since they’re paying less to purchase the unit but can still expect a comparable rental amount to Freehold properties meaning your monthly income will be much higher. I would also suggest Leasehold units for older owners who would like to pay less money upfront to have more money to spend in their older years, who aren’t looking to make a big long term profit from their real estate.

Make sure you’re working with an agent who understands leasehold properties (me!), the lease and the buying process so that you know the in’s and out’s of the purchase.

Prospective purchases are strongly encouraged to consult a knowledgeable Lawyer to thoroughly understand the contract and its obligations, and to work with a Mortgage Broker who is familiar with organizing mortgages on leasehold land.

For more information about Leasehold Units, check out the Province of BC Long term Residential Lease Information Page.

Contact me if you have any questions!

Kristi Holz Market Update

May 2020 Vancouver Real Estate Update

Hello from home! I hope everyone is doing well, getting out for some sun and making the most of the new normal.

It’s been almost 2 months since the “Stay at Home” measure and thankfully BC has proven to have handled this outbreak quite well. We’ll soon see a slow re-opening of the economy and a bit more semblance of normal in our lives. I am still working with some keen clients and I recently sold a couple listings, so believe me, the market is still moving (with proper precautions in place). A lot of Buyers see this as an opportunity to buy something with less competition – remember, everything was getting multiple offers before the pandemic hit – and some Buyers are still focused on finding something great, and if it hits the market, it’s worthwhile to pursue. Interestingly, there have still been quite a few multiple offer scenarios in the last few weeks. I’ve seen it on condos, houses and out in Port Moody. The common denominator is that the unit checks off a lot of boxes on a common list of what Buyers are looking for, and that the price was reasonable.

Spring is always the busiest few months in real estate – we typically see the highest inventory levels and the highest number of sales. As you can imagine, the market has slowed down. There are fewer Sellers and fewer Buyers, which is not surprising as many folks are weary of viewings and everyone wanted to wait to see if this pandemic would affect them financially. The general consensus is that the market will be affected leading to some declines in price as well.

The interesting thing is most Vancouver markets haven’t been affected when it comes to price. A slowing market often hits suburbs (think Burnaby, Richmond, etc) harder and longer than it does the city so I would expect those markets to show more price declines and Buyer negotiation power over the next few months. A slowing market also affects high priced properties in each market – for instance, 1 bed condos above $700k may not be as busy, but the entry level condo market is still very active.

Keep in mind, prices are still generally down from it’s heights a few years ago, so if you’re looking to move up to a bigger property, now could be a good time. Your Vancouver condo may down from the value it was at the height of the market, but the house you’re looking to buy will be down even more, so the difference in price between them is smaller. In other words, comparing the highest HPI Price we saw over the last few years to the most recent HPI price, condos are down about 3% while houses are down 14% (8% in East Van) and townhouses are down 7%.

In terms of the future of the market, I think we’ll see:

  • an increase in activity once we see an increase in inventory. The big question is how long it will be until we see a big increase in inventory and just how much of an increase will we see? There is a demand for good inventory out there, as indicated by the sales and multiple offer situations recently, but not much to choose from, and more inventory makes people are excited to consider a move.
  • an influx of tenanted units hit the market once the restriction on giving Tenant’s Notice to End Tenancy is lifted.
  • generally stagnant value over the next few months. Keep in mind list price is different from value – some listings are over priced and some will be underpriced so you’ll see a relative adjustment on their price with a sale.
  • a busier summer then normal, which should roll into a busy Fall.

At the end of the day, I think Buyers need to be prepared – financially and mentally – to jump into the market. You can’t take advantage of a potential “deal” if you’re only casually looking and don’t have a current idea of your mortgage qualification, and you won’t be able to compete in multiple offers if you’re not ready to go.

Let me know if you need a recommendation for a mortgage broker. Some mortgage qualification has changed due to Covid, so ensure you have an up to date idea of your affordability and options. Mortgage Brokers are also really helpful in instructing you how to improve your affordability if you are hoping to buy down the road (increased down payment? pay off your car first? etc).

Onto the stats.

Vancouver East

– HPI Prices in East Vancouver increased ever so slightly this past month. It has been increasing slowly since September.

– The sales to active ratio (i.e. number of sales compared to listings) dropped by just over half this past month

– Total inventory remained fairly steady, but the number of new listings dropped considerably. Inventory is close to the numbers we typically see in December.

East Vancouver Real Estate Stats up to and including April 2020

HPI Price for East Vancouver

Median Percentage of Original Price for East Vancouver

New Listings for East Vancouver

Total Inventory for East Vancouver

Total Sales for East Vancouver

Sales to Active Ratio for East Vancouver

Median Days on Market for East Vancouver

Vancouver West

– The total inventory only dropped 8% overall, but the number of new listings was close to half compared to the previous month

– The number of sales dropped around 59% compared to the previous month

– The HPI Price on the Westside was in line with the previous 12 months! This stat has been incredibly consistent since April 2019, though it is showing a slight increase in HPI Price of detached houses. The Westside detached house market has seen a resurgence in activity over the last few months.

Vancouver Westside Real Estate Stats up to and including April 2020

HPI Price for Vancouver West

Median Percentage of Original Price for Vancouver West

New Listings for Vancouver West

Total Inventory for Vancouver West

Total Sales for Vancouver West

Sales to Active Ratio for Vancouver West

Median Days on Market for Vancouver West

Remember, good properties in good buildings in good locations will hold their value and will be a better option for you than long term than something priced low for a reason (unless that reason is that the unit needs serious renovations – then you can add value). Don’t lose sight of the fact that you’re looking for a home that works for you, ideally for a number of years, so go after the property that makes the most sense to you.

If you want to chat through your options, best path forward and the intricacies of the market, let me know! I’m happy to jump on a Zoom call (or regular phone call) to get you started. It takes some finesse to handle a buy and sell, so make sure you know your options before jumping in. If you’d like to slowly dip your toes in the market, I can also set you up on a Custom Real Estate Search so feel free to contact me: kristi@realestatevancity.ca or 778-387-7371 to let me know what you’re looking for in a new home.

This kind of market leads to a needed reminder for Sellers – you need to ensure your property looks good, is priced right and has an agent truly trying to sell it. Contact me to talk about the best plan of action for the sale of your home – you need good marketing, positive viewings, market knowledge and strong negotiation.

Sending you health and happiness, and the suggestion to watch Veep if you’re looking for a new show to watch 🙂

– Kristi

Kristi Holz Market Update

April 2020 Vancouver Real Estate Update

Hi Everyone. So we’re into April now and a few weeks into our “Stay at Home” measure. This measure started about halfway into March, so the month of March tells two different stories. April’s numbers are going to be a much more realistic measure of the change in activity. As per the Real Estate Board, the first half of the month were “the busiest days of the year for our region with heightened demand and multiple offers becoming more common” and boy was that the truth. Anything good was getting multiple offers and a lot of Buyers were excited about the additional influx of inventory we were expecting to see in the Spring. Interest rates were good and Buyer confidence was back after a slow 2018-2019. This allowed Sellers to upgrade to a bigger home and produced a lot of activity and excitement.

As the province forced restaurants and bars to close, and asked anyone who could work from home to do so, the number of real estate transactions dropped quickly. There were still some people who needed to buy or sell and they continued on their quest, and I expect we’ll see more of that activity in the next few weeks as people have had time to consider their situation and  needs. I would imagine that anyone who has their home listed for sale right now is pretty keen to sell and with an expected recession, there are going to be opportunities for Buyers to get into the market if they have retained their job and didn’t see a huge hit to their financial situation. 

I wrote a longer blog post about some initial thoughts (from mid-March) on Covid-19 and the Real Estate Market in addition to a blog about Navigating a Slow Market.

Listing Agents are ensuring people are only viewing if they aren’t showing any symptoms, and are asking people to wash their hands before the viewing, using protective gear and cleaning units before and after all showings. Many realtors are also asking all parties involved in the showing to sign a waiver indicating that everyone is following proper procedure themselves, and are waiving liability in case anyone gets sick. 

Mortgage interest rates have dropped (again!) and are expected to stay low for awhile. I’m on a variable rate mortgage and as of this week my rate dropped to 1.5% (thankfully that results in some much appreciated monthly savings, though rates will increase again in the future). A lot of Buyers are taking this opportunity to defer their mortgage or re-finance with these low rates as well, so check in with your mortgage broker for more information. As always, don’t hesitate to ask me if you need a referral to a great mortgage broker. 

I have been spending a lot of my time researching economic cycles, recession and the Vancouver market over the last few decades in an effort to be prepared and knowledgeable from what we’re experiencing now. We just came out of a slow market in 2018-2019 so the memories of a slow market and how to attack it are still fresh. I had a lot of clients waiting for the market to drop during the slow market, only to miss the boat and end up in competing offer situations. This sentence remains true: “How do you know we’ve hit the bottom of the market? Prices have increased”. When the market is slow, you have to be an active Buyer negotiating with Sellers in order to find the deals. And in the excitement of finding a deal, don’t lose sight of the fact that you’re trying to find the right home. Good properties in good buildings in good locations will be a better option for you long term, and will always be an easier sell when it comes time to move.

Onto the stats. 

The stats below are for the entire month of March, and can’t be split up into days or weeks, so it’s hard to see the difference this month. April’s numbers will be more interesting as that will likely be a full month indicating the impact on the market. 

On the Westside of Vancouver: 

– HPI Price remained steady this month, across the board. Prices in this market have been really consistent all year despite a huge decrease in median Days on Market and a huge increase in the Sales to Active Ratio. That tells me that Sellers hit a point where they weren’t willing to budge on price and waited for the market to improve.

– The detached house market has been really robust this year, and still, despite the pandemic. I have heard that there has been an increase in foreign buyers over the last few months which isn’t a surprise given how much the market has dropped over the last year or two. Not only does BC look like an amazing, well managed city during the pandemic, but the decline in price makes up for the extra foreign buyers tax that foreign buyers would have to pay. Check out the median Days on Market drop from January!

– Westside Condos saw a big increase in both inventory and new listings. I imagine a lot of this is attributed to downtown investor owned condos being listed for sale at the start of this pandemic. Sales were up as well so that was the extra boost in confidence many Sellers likely needed to list ASAP.

– Activity in the westside Townhouse market increased significantly in February like the detached market, and it has retained a steady HPI Price. Inventory is slightly down.

Vancouver Westside Real Estate Stats up to and including March 2020

HPI Price for Vancouver West

Median Percentage of Original Price for Vancouver West

New Listings for Vancouver West

Total Inventory for Vancouver West

Total Sales for Vancouver West

Sales to Active Ratio for Vancouver West

Median Days on Market for Vancouver West

On the Eastside of Vancouver:

– The HPI Price increased slightly this past month, across the board.

– The detached house market saw a drop in total inventory but an increase in new listings. I can imagine Sellers who already had their property for sale that wasn’t selling took their home off the market once this “stay at home” measure was in place, whereas a swath of new Sellers listed their home as the pandemic worsened in order to sell before things got really slow.

– Condo inventory slowed down this month, though sales continued. HPI and average sale price dropped ever so slightly. I find first time condo buyers to be the most nervous, so this market always slows the most whenever the general market slows, however, this was also a busy market so there is room to slow down.

– The townhouse market is generally the steadiest and smallest market. It saw fewer new listings and the smallest increase in sales.

East Vancouver Real Estate Stats up to and including March 2020

HPI Price for East Vancouver

Median Percentage of Original Price for East Vancouver

New Listings for East Vancouver

Total Inventory for East Vancouver

Total Sales for East Vancouver

Sales to Active Ratio for East Vancouver

Median Days on Market for East Vancouver

If you’d like to follow the ups and downs in the market, I can set you up on a Custom Real Estate Search. Contact me to get that started: kristi@realestatevancity.ca or 778-387-7371.

Sending you love and happiness during this crazy time! 

Kristi

Kristi Holz FAQs

How to Navigate a Slow Market

Covid-19 is affecting all aspects of our lives including the Real Estate Market. With everyone trying to stay home and self-isolate this past week and likely for a few more weeks, we’re going to see what was a busy, prosperous market slow down significantly, but the expectation is that it will pick up again once we’re on the other side of this pandemic given the pent up demand.

This post is primarily for Buyers looking in a slow market, but if you’re a Seller, you’re still in a good position. There are going to be a lot of Sellers who postpone their listing so there will likely be less competition. If you bought prior to 2018 then you’ve likely made some money on your home and have some wiggle room when it comes to value. The biggest consideration to make is your next step. Are you buying again, and if so, what are you looking for? These details matter when it comes to my advice to you, so if you’re interested in chatting about what is best for you, contact me: 778-387-7371 or kristi@realestatevancity.ca.

I have a lot of clients who want to wait out the next week or to, mostly due to social responsibility but also because they anticipate the market slowing down. Everyone is asking me about timing the market, and when the best time will be to buy. Timing the Market is really, really hard:

  1. I always remember a quote a seasoned agent told me years ago: “How do you know when you’ve hit the bottom of the market? It’s started to go up again”. You won’t know you’re at the bottom until it’s passed you by. If you buy in a slow market, you’re likely buying close to the bottom of the market so you’ll be getting a deal anyways.
  2. You need to actually negotiate with Sellers to find out how low they’re willing to go.
  3. You need a lot of confidence to buy when no one else is willing too. After working through a few slow markets, I can tell you this is harder than it seems.

So, in order to have a chance at timing the market, you need to be active in the market.  By the time most Buyers feel comfortable jumping in after the market slows down, most other Buyers will be thinking the same thing, which is when the competition increases and the market picks up again! So, my advice to you is to stay on top of the market! Your opportunity could be there next week from now, or two months from now, or in the Fall. The more you know about your options, the more prepared you’ll be to take advantage of whatever the market becomes. Keep in mind that we were just dealing with a busy, multiple offer market that started this past Fall and continued up to this week. This pent up demand is still there, and I have no doubt that once the market picks up again we’ll be back in a multiple offer market.

When you’re looking to buy in a slowing market, compare the price of what you’re looking at to the last few months. How does it compare? If it’s a better price than you’ve seen for the last few months? I’m a numbers feen so you can rest assured I’ll be comparing your options and giving you my thoughts.

For Buyers looking to make a move, slow markets are a great time to move UP the ladder. If the market drops 5%, then even if your 1 bedroom condo isn’t worth as much now as it was last month, the townhouse you’re looking to buy dropped a bigger dollar amount, so the price gap has narrowed between your purchase and sale which is really beneficial in making the jump. Slow Markets are also a great time to get into your forever home. The Vancouver Detached Market has always been competitive when it comes to a livable, well maintained home with a suite, so if the opportunity arises to jump into a good house that you’ll presumably be living in for decades, go for it.

I’ve spent quite a bit of time over the last few days reviewing stats and information from the last couple Real Estate Market slow downs: the global 2008 recession, 2016 after the Foreign Buyers Tax was introduced, and the most recent one in 2018-2019. These market slow downs have lasted anywhere from 6 months to just over a year, and in 2008 and 2016 prices surpassed the previous high. We were on pace to do that now after the slow down in 2018, but this pandemic has thrown this wrench into a busy market. So if you were actively considering purchasing a property recently and lost in multiple offer situations, and now the market starts to slow down, why would you stop looking? It just got easier to buy and no one finds a deal if they aren’t looking.

During any market, it’s a personal decision as to when to buy: everyone has to consider their current financial scenario, their career and their short and long term plans. Right now, if you have the job security and have been seriously looking for real estate over the last few months, this is your opportunity to find something with much less competition and some negotiation room. My office – Stilhavn Real Estate – has a list going of “off market” listings (Sellers who are keen to sell but don’t want to list publicly). I’ll be following this list and contacting my Buyers if a colleague of mine has a listing that would work for them.

One final thought I’d like to leave you with – in this slow market and desire to find a deal, don’t forget about finding a property that you actually like and want to live in! As much as real estate is an investment, it’s also going to be your home so make sure it’s somewhere that you feel comfortable as the longer you’re willing to live in it, the more likely you’ll be able to withstand future changes in the market.

As always, Real Estate has an overarching trend, but what the best decision is for you depends on your particular situation. If you want to chat about what’s right for you given the current and future market, contact me: 778-387-7371 or kristi@realestatevancity.ca.

Kristi Holz FAQs

A Quick Overview of Detached House Maintenance and Potential Issues

My favourite sector of Vancouver Real Estate are the houses and we have an interesting selection of styles and construction throughout the city. Most of our housing stock is older which means every Buyer and Home Owner has to be aware of the regular maintenance and upkeep required. When you’re in the process of purchasing a house, you need to remember that home inspections are of utmost importance in ensuring you understand the current quality of the original build (such as the exterior and foundation) as well as the quality of the renovations added over the years (such as the roof, electrical, decks, and basement suites). Below is a quick – and far from extensive – overview of some of the most common maintenance and repair found during an inspection of older houses. 

A couple details to keep in mind: 

  • I am not a professional home inspector and neither are you – get a certified home inspection! I must state the obvious – this post is not a replacement for specific and professional advice from a home inspector. The home inspector will go through all the details I mention below, and much, much more including maintenance tips.
  • This post is referring to older houses. Houses built in the last few decades have had to follow a specific building code and use different materials, construction and systems. You should still get a home inspection done on a newer house to ensure the work was done well and to code (building code sets the minimum standard).
  • Houses built during different eras have different inherent defects due to materials used and the style of construction.  For example, early 1900’s homes may have lead based paint, oil tanks, and knob and tube wiring, whereas 1970s homes may have asbestos.
  • Older homes are also typically a mix of permitted work and handyman work done at various times and often without much history as to when or why. Ensure you call the City to determine if any of the work was done with permits and get as much history of the house from the Seller as possible.

Character Merit and Heritage Houses

One detail you’ll always want to verify as you’re purchasing a house is whether or not is has any character merit or heritage designations, as this can determine zoning, potential sqft, renovations and new build potential, demo recycling requirements, or if any particular maintenance is required.

A house has Character Merit when it meets the criteria established by the City of Vancouver. Typically you have to send in photos of the home and wait for the City’s response: City of Vancouver Character Merit Assessment. Typically houses built pre-1940 need a character merit, but this criteria should be checked for every older property as I’ve been surprised in the past. Character Merit determines potential for the property and demo recycling requirements.

Heritage Designation is much more strict with regards to what you can do with the property – both interior, exterior and landscaping. There are various levels of Heritage Designation, so you want to ensure you understand if the house is considered Heritage in any way. This information should be available from the City via the Heritage Registration, but the Vancouver Heritage Foundation is a fantastic resource for information as well.

Roof

Every roof has a life span, so you need to know where yours sits on the spectrum. The house inspector will get on top of your roof to look for signs of issues. What material is the roof? Is there wear and tear, indication of animals or pests, incorrect flashing or gutter issues? Not only can an old roof lead to leaks in your property, but an incorrectly installed gutter or flashing can lead to moisture damage. Are the gutters cleaned or blocked? Does the attic have adequate ventilation? Is the chimney structurally sound? 

Exterior

The exterior of every home and garage is so important, and there are quite a few things to consider: 

Is the foundation solid? Is the house on proper footings? Cracks or sloping can be major issues to rectify, as can old stone foundations. There are a few areas in East Van with boggy land that has lead to some sinking and sloped foundations so make sure the house is either on solid ground, or remediated for the boggy land.

Does the house have proper drainage with a drain tile system, and if so, how old is the current system? Does the property slope away from the house? Is there vegetation or potential roots touching the house? Do the gutters drain away from the house? 

How does the current exterior look and what product is it made from? Is the paint missing or peeling? Is the exterior buckling or cracking? Is there any damage from rot, mould, pests or wind? Do the windows look like they have proper and consistent sealant? Is there appropriate flashing? Are the transitions between materials properly sealed? Does the wood trim look like it was recently painted?

Are the retaining walls structurally sound? Do the fences look deteriorated and damaged? 

Are the decks built appropriately? Has the wood been well maintained? Does the deck have any safety concerns with its design and are the railings sturdy? 

Electrical

The electrical work is one of the biggest questions for any potential house owners, only because it can be a big job if it needs to be replaced. Since most of the electrical is not visible to the inspector, try to find out the history of the electrical work from the Seller (and potentially, the City if permits were pulled) since electrical is often done in portions, rather than all at once. What kind of electrical wiring does the house currently have (knob and tube, copper, aluminum, etc)? Was the panel updated and does it overheat? Do plugs near water sources have GFCI breakers? Does the house have at least 100 amp service or only 60 amp? 60 amp could be an issue for getting insurance and a mortgage.

The potential issues with electrical can be a blog post in its own right, so ensure you understand the type of wiring, type of panel and what updates may have been done in the past.

Heating

There are a variety of heating options in any house, so pose bigger potential maintenance and cost issues that others. Homes generally older then the 1960’s may have had an oil tank installed at one point in time, providing fuel for the furnace. These oil tanks have all been de-commissioned but they can pose a significant and expensive risk to the soil so they need to be removed if discovered. Ensure you do an oil tank scan to verify the existence (or lack thereof) of an oil tank so that the removal can be done by the current Seller. The potential issue with oil tanks is a huge concern and should be dealt with both in the contract and during your due diligence. 

Ensure you understand the type of heating in the house. Keep in mind that it may be different in various parts of the house due to previous additions and renovations. Observe the furnace. When was it installed? How is it powered? Is there any indication of recent maintenance? 

Plumbing

Have a look at the plumbing that is visible in the house. What type of plumbing does the house have and what condition are the pipes (that are visible)? Is it poly-b or kitek plumbing (these types of piping can lead to issues in getting mortgage and insurance)? Where are the water shut-offs? Have braided hoses been installed on appliances and fixtures? Observe the hot water system. Is it a tank or on demand system? How old is it? Has it been secured in case of an earthquake? Is it easily accessible? Is there a sump pump? Has the main supply line from the city been replaced? Were any bathrooms added over the years?

Interior

There are so many details in the interior to consider. Is there a fireplace? When was the last time is was maintained? Are the windows functional? Do the windows show any signs of age or issue? Is there any indication of mould or dampness in the kitchen or bathrooms? Are the bathrooms caulked appropriately? Is the tile grout in good condition and sealed? Is the laundry hooked up properly with appropriate venting and hoses? Are there any cracks in the walls indicating structural movement? Are the stairs to code? Is there a crawlspace or access to the attic? Is there any evidence of rodent activity in the attic? Is the attic insulation in good condition? Does the attic have good ventilation?

Is there a chance that the interior or exterior materials may have asbestos? This can be found in vinyl flooring, drywall tape, drywall, certain exterior products, etc. Vermiculite insulation can also be an issue if found (it’s often found in attics).

Conclusion

The chance to own a house is a blessing, but make sure you have as good an understanding of the house as possible so you can be prepared for the regular and potential maintenance you’ll need to do to keep the house in good shape. Be prepared to do regular reviews of your home to ensure you’re staying on top of maintenance (consider getting another home inspection does if it’s been a few years and you’ve done a few upgrades since you bought). You can create a yearly check-list so nothing gets missed. Ask your realtor for recommendations on service providers and solutions for odd issues. As with any purchase, ensure you have some money set aside for unexpected issues – they can be costly for a house, but it’s worth it!

Kristi Holz FAQs

What you need to know about AirBnb and Strata Bylaws

NOTE: This column is not a substitute for professional legal advice when it comes to short term rentals. Please speak with a Lawyer to discuss your particular situation and options. Keep in mind all condo buildings and the Government can change existing policy at any time.

Over the last few years I have had a few clients interested in pursuing AirBnB style investment properties, so I have done a lot of research into their options and the wording of Strata rental bylaws. As I mentioned above, I’m not a lawyer so get appropriate legal advice if this is important to you, but here are a few things I’ve learned from the research I’ve done:

(1) The City of Vancouver requires that anyone looking to rent their unit for less than 1 month (on AirBnB or any other site) must satisfy the following (including, but not limited to) criteria:

(2) Short Term Rentals like AirBnB are considered “licenses” rather than “leases”. Many Strata Bylaws allow Owners to enter into a “lease” for the use of their Strata Lot, but do not allow Owners to enter into a “license” for use of their Strata Lot. This wording would be very important in a legal battle involving an Owner vs Strata, so review your Bylaws in detail. Again, I am not a Lawyer, but here is a general definition of the terminology. Consult your Lawyer regarding any legalities.

  • It’s a “license” when the Owner gives someone permission to use the space temporarily for a specific reason. As you can imagine, there is no BC Tenancy Agreement in place, but often, though not required, there is a written License Agreement between the two parties.
  • It’s a “lease” when there is an agreement in place giving the tenant exclusive possession of the property, often via a BC Tenancy Agreement. Keep in mind, even if a BC Tenancy Agreement was not signed, certain situations may still legally be considered a standard Tenancy.

(3) There is a particular issue to be aware of when it comes to roommates or renting out extra rooms. A couple things to keep in mind:

  • Some Strata Bylaws indicate that Owners cannot rent out “less than all of the unit”, which means you cannot rent out an extra room to a roommate. Bylaws often specify a certain length of time that someone is considered a “guest” so look for a Bylaw indicating this time period to determine if someone staying with you would be considered a renter or licensee (distinction would depend on your agreement with them).
  • If you are renting out a room on a license basis, ensure it is allowed as per your Strata bylaws, even if you are still living in the property during the rental period.
  • If you are renting out a room with a standard Tenancy Agreement in place, then technically this constitutes a rental as per Strata Bylaws, which means you should follow your building’s rental bylaws, including, but not limited to: submitting a Form K to the Strata, ensuring your Tenant knows the Bylaws and Rules, applying for permission to rent and following any rental bylaws regarding total number allowed by the Strata and minimum lease lengths.

(4) Review the Strata Minutes (going as far back as possible) to see if there is any discussion of short term rentals, standard rentals, bylaw wording, and fines for Owners not following the bylaws. If the building mentions that they have previously fined Owners for not following rental bylaws properly then you’ll want to tread carefully. Keep in mind new Strata Council members might have a certain desire to enforce these Bylaws even if previous Councils turned a blind eye. Strata Councils are technically required by the Strata Property Act to enforce Bylaws as written.

(5) I don’t own investment properties, nor do I rent my own home out on AirBnB, so I can’t speak for experience, but I have recently seen properties listed for sale that rent on AirBnB despite not satisfying the City of Vancouver Short Term Rental / AirBnB policy. I don’t know how these people are circumventing the rules, but I imagine it’s both the City (and in some cases, the Strata) not performing enough random audits to ensure people are following the rules.

In short, I say this to all of my clients looking for buildings that allow AirBnB: even if a building allows short term rentals right now, that Bylaw can change, along with Government policy, so your intention and investment planning should be to rent the unit on a long term basis with a standard BC Tenancy Agreement.

Here are a few sites to offer more information on the topics above:

Kristi Holz Market Update

Covid-19 and the Vancouver Real Estate Market

Oi vey. 

What a week. What a year. Obviously, Covid-19 has had a dramatic affect on how we all interact and changes in normal protocol seem to be finally hitting the Vancouver Real Estate Market. This blog features my own thoughts and insights from those in my circle during this strange time. In addition to conversations with my contacts in the financial world, I’ve been studying real estate stats and the recession in 2008 for some insight into what might happen over the next few months.

Though most units are still receiving significant interest and multiple offers, Agents are starting to have discussions with their Buyers and Sellers as to their short term plans. As with everything during this pandemic, we are re-evaluating plans on a daily basis. This scenario is unprecedented – I find people are reacting in a way similar to a decline in the market. Some fear the worst and want to act immediately, while others would rather wait it out. If you were looking to make a move before this situation hit, what you should do is your decision. Life will return to some semblance of normal, so it’s a matter your personal and financial position, as well as how long you want to wait to make a move.

Here are a few thoughts: 

  • The general consensus is for everyone to self quarantine as much as possible over the next 2 to 3 weeks to stop the spread of the virus, so I expect the next few months to be slower than normal.
  • Although no one knows what will happen in the future, the turnaround in Asia is a positive development for everyone, as well as the news reports that a variety of vaccines are in development and that Canada and the US are taking this situation very seriously.
  • The economy has been through similar drops in recent decades and history has shown that recovery, if not a stronger economy, will happen in time. The Government has done a great job thus far of supporting individuals and businesses, and we are lucky to live in a strong economy that will weather the storm. There will be hardship, especially if society is all but shutdown for a few weeks, but we have recovered from similar scenarios in the past. Certain industries will be more affected than others, but as the recession in 2008 proves, we will steadily recover.
  • In order to stimulate the economy, our Government and the Bank of Canada will likely keep interest rates on the lower end of the scale for the time being. I wouldn’t be surprised to see some changes in the rate, but it should stay fairly low. I can’t see the Government making any negative changes to policies (as in, changing any policies to make it harder to purchase property) anytime soon. If anything, there’s a chance they will relax lending policies to help folks recover quicker, but I wouldn’t rely on it.
  • There was a lot of pent up demand for Real Estate this year after the recent slow market that saw a lot of Buyers take the “wait and see” approach, and this pandemic will likely increase the amount of future pent up demand as Buyers do it again. Housing is such an important part of everyone’s life, and Real Estate is an investment into yourself, so even if things do slow down for a few months, it never stays down. Buyers will adjust their ideal price range, but the market will keep moving, albeit, slower.
  • There are going to be Sellers who continue with their plans to sell in order to take advantage of the current competitive Buyer activity while it’s still happening. I would imagine if this coming weekend’s open houses are abnormally slow, some Sellers will pull their listings and wait until things improve. Those who are really keen to sell will keep their listing up.
  • There are also Sellers out there who need to sell. Perhaps they just bought their next place, and have to sell in order to complete their next purchase, perhaps they have an investment property and want an influx of money given other losses, perhaps they’ve lost their job and need to re-configure their finances and perhaps they’re the doomsday type that feel it’s better to sell now, regardless of the situation, than to wait until things return to normal.
  • Properties have been getting multiple offers, so there are still a lot of Buyers looking to make some moves and I can’t imagine everyone will step back for the next couple of weeks. Some Buyers view these uncertain scenarios as an opportunity to take advantage of a slow weekend, especially since just about everything this year has gone into multiple offers. If a Buyer has been looking for a particular property for awhile now, and it finally hits the market, those Buyers will likely pursue it. 
  • As for prices.… the drop in the stock market will affect high net worth individuals the most, so we may see a decline in the upper end of the market. These individuals may re-focus their energy on investment properties, which is often seen as a more stable long term investment compared to the stock market. However, the focus of any investor will be specific to homes that can be rented so anything that allows rentals will have a lot more interest than buildings that do not allow rentals. First Time Buyers are always the most nervous about buying, and they have the ability to stall the market (if they don’t buy the 1 bedrooms, then the people who own 1 bedrooms can’t buy the 2 bedrooms, and those 2 bedroom owners can’t move up, etc) so once this pandemic proves to be on the upswing, I think we’ll see the market pick up again. This lack of activity will likely lead to some minor prices decreases and an overall stalling of the market – BUT – if you happen to be looking to buy a good unit in the most active Vancouver markets (the entry level detached market, entry level two bedroom, or rentable 1 bed condo market) then I would expect the activity to remain fairly steady. These units were often getting 5+, 10+, 20+ offers recently, so there are still a lot of Buyers out there even if many choose to step away from their search for the time being. I believe we’ll be in a strong, active market once this passes, so it’s a good time to take advantage of the opportunities now. Remember, if you’re buying a home to live in for 3+ years, you’ll ride out any short term changes in the market.
  • Some people are postponing listings and their searches until there is more certainty and confidence in the health of our community. For obvious reasons, this applies to those who are ill, immunocompromised or older, in addition to people who aren’t comfortable knowing who they are interacting with during viewings.
  • I’m hearing a lot of Agents talk about cancelling Open Houses and only allowing private showings. This will help to ensure some distance between Buyers as well as the chance to sanitize appropriately. UPDATE: The Real Estate Board will not be allowing Open Houses after the weekend of March 21/22nd though private showings are allowed.
  • I’ve had a few Buyers postpone their search for the time being mostly due to social responsibility, but a couple have cited declines in their investment portfolio (and thus down payment) and wanting to wait to see what happens. Similar to any slow market (which we just went through in 2019) a lot of Buyers step out of the market for fear of what might happen, only to miss the opportunities and realize this when the market picks up again. If you’re buying a unit to live in for the next 3+ years, you’ll ride out any short term market changes. Here’s my post about How to Navigate a Slow Market.
  • Overall, I don’t anticipate any major and long lasting, changes to the Real Estate Market. I bet that we’ll see strong activity in the market in the late Spring, throughout the Summer and into Fall (without the typical Summer slow down) to account for a few slower weeks now while everyone is trying to “stay the F home”. 

The Real Estate Board has released statements to Realtors indicating that it is the decision of us and our clients as to continue, adapt or cancel any short term plans given the pandemic. UPDATE: The Real Estate Board is not allowing any Open Houses after the weekend of March 21/22nd for the time being. Any sales already under contract are still obligated to proceed and properties are still allowed to be listed and sold, though Agents and their clients need to understand the potential issues we might face during this time period, which could include unexpected and required quarantines and lockdowns, unexpected changes to the financial market and possible illnesses. 

In the meantime, remember to continue to support local businesses and workers, when possible, during these times. Order take out and tip your delivery drivers. Treat workers and fellow residents kindly. Get outside for fresh air and exercise. Don’t forget the fun in puzzles, music, games and books. Call your friends and family. Follow protocol if required. And stay positive! We live in a strong and prosperous economy, and everything will be okay. 

I wish everyone health and happiness. I’m here if you need me and happy to chat about any of your questions with regards to real estate, now and in the future: kristi@realestatevancity.ca or 778-387-7371.

Kristi Holz FAQs

Multiple Offers and Vancouver Real Estate

Right now, the Vancouver Real Estate Market is BUSY! This activity, paired with low inventory, has lead to any good properties receiving multiple offers. Multiple Offers on properties for sale in Vancouver happen when the market is really busy (enough that inventory doesn’t meet demand) or when a listing agent strategically lists a property far under its value. Here’s what you need to know.

Continue reading →