BC Home Sales to Rise in 2020

BCREA 2019 Second Quarter Housing Forecast

Vancouver, BC – June, 2019. The British Columbia Real Estate Association (BCREA) released its 2019 Second Quarter Housing Forecast today.

Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 9 per cent to 71,400 units this year, after recording 78,346 residential sales in 2018. MLS® residential sales are forecast to increase 14 per cent to 81,700 units in 2020. The 10-year average for MLS® residential sales in the province is 84,300 units.

“The shock to affordability from restrictive mortgage policies, especially the B20 stress test, will continue to limit housing demand in the province this year,” said Cameron Muir, BCREA Chief Economist. “However, a relatively strong economy and favourable demographics are likely creating pent-up demand in the housing market,”

The inventory of homes for sale has climbed out of a cyclical low, leading to balanced market conditions in many areas and buyer’s market conditions in some communities and across some products types. Current market conditions are expected to provide little upward pressure on home prices this year, with the average annual residential price forecast to remain essentially unchanged, albeit down 2 per cent to $697,000. Modest improvement in consumer demand is expected to unfold though 2020, pushing the average residential price up 4 per cent to $726,000.

To view the full BCREA Housing Forecast, click here.

For more information, please contact:  Gino Pezzani.

 

Stats Centre Reports May 2019 for Housing in Great Vancouver

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Creatives on Creativity

Being creative all the time is hard. Writers for the Money magazine website talked to a variety of people in creative positions to find out what keeps the spark going. Here are some of their answers:

• Physical activity. Kuba Koziej, CEO and co-founder of Zety: “Physical activity lubricates the rusty hinges in my brain and makes my thinking more fluid. So I often take my dog for a quick run or play around the agility park. A 10-minute break shoots some oxygen and dopamine into my system and gets my mind refreshed and creative.”

• Music. Andres Lares, managing partner of Shapiro
Negotiations Institute: “To stay creative, I put on house music fairly loudly on a set of headphones. Not only does the music help focus me, others come by and only interrupt me when it’s critical.”

• Dream boards. Adamaris Mendoza, psychotherapist and relationship coach: “It might sound crazy to some, but I have a daily manifesting practice that uses a vision board. Every morning I look at an annual board full of images of my dreams. I even keep a picture of my vision board in my phone in case I need a quick pick-me-up during the day. It connects me with why I have a business.”

• Collaboration. Andrea Castro, visual artist: “To keep myself focused and inspired, I reach out to other workers in my field by phone or Skype. A one-hour talk with an artist friend, sharing our tactics, frustrations, and wins, simply fuels me to no end. It makes me want to go directly to the easel.”

• Breaks. Kat Cohen, CEO of IvyWise: “This may sound counterintuitive, but I get many of my most creative ideas while working on mundane tasks, like running errands or doing administrative upkeep. My mind is always ‘on’ — I’m constantly focusing on the students I work with and goals for my brand. Carving out a little downtime where I can tune these big-picture ambitions out and focus in on something simple gives me the mental space I need to come up with innovative ideas.”

Powering the Future

Recycling to reduce waste and protect the environment isn’t a new idea. However, a new process may be able to recycle up to 25% of our plastic waste into fuel, according to the Science Alert website. Chemists at Purdue University have been able to liquefy the polymers that make up about a quarter of plastic waste and turn it into diesel-like products that can be used as a basis for fuel.

The process, called hydrothermal liquefaction, involves heating water under heavy pressure to work as a solvent and catalyst for transforming the molecular makeup of polymers. With the addition of some hydrogen atoms, this converts the plastic into a fluid called naphtha.

Previous results were disappointing, but the Purdue team of chemical engineers recently converted more than 90% of the polypropylene used in an experiment into fuel-grade naphtha. Further analysis suggests that the process could be a more efficient and environmentally friendly way of dealing with plastic waste than burning it or recycling it.

BC Home Sales on the Rise in May

Vancouver, BC – June 14, 2019. The British Columbia Real Estate Association (BCREA) reports that a total of 8,221 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in May, a decline of 7 per cent from the same month last year. The average MLS® residential price in the province was $707,829, a decline of 4.3 per cent from May 2018. Total sales dollar volume was $5.8 billion, an 11 per cent decline from the same month last year.

“BC home sales increased 9 per cent in May compared to April, on a seasonally adjusted basis,” said BCREA Chief Economist Cameron Muir. “However, consumers continue to struggle with the negative shock to affordability that stringent mortgage lending policies have created.”

Total MLS® residential active listings were up 23.2 per cent to 41,519 units compared to the same month last year. However, total active listings were down 2 per cent from April, on a seasonally adjusted basis, the first monthly decline since the B20 Stress test was introduced in January 2018.

Year-to-date, BC residential sales dollar volume was down 25.1 per cent to $19.8 billion, compared with the same period in 2018. Residential unit sales decreased 20.2 per cent to 28,711 units, while the average MLS® residential price was down 6.2 per cent to $688,339.

For more information, please contact: Gino Pezzani.

Psst— Did You Know?

The first Father’s Day was celebrated on June 19, 1910, in the state of Washington.

However, it was not until 1972 that the day honoring fathers became a nationwide holiday in the United States.

In Canada, the idea of a special day to honor fathers and celebrate fatherhood was introduced by a woman named Sonora Smart Dodd. She was inspired by American Mother’s Day celebrations and planned a day to honor fathers early in the 20th century.

May 2019 Vancouver Housing Market Insights (Video Update)

REBGV President Ashley Smith provides a summary of the May 2019 housing market statistics.

A Man of Few Words

Once, there was a wealthy prince who was madly in love with a young noblewoman, but he had been cursed as a young boy: upon turning 18, he could not speak more than one word per year. The prince decided he would endure two years without speech so that he could have the pleasure of calling his beloved, “My darling.”

As two years drew to a close, the prince decided to remain quiet for three more years so he could declare his love as well. When the three extra years were almost finished, he realized what he wanted more than anything was to marry his fair lady, so he remained trapped in silence year after year, waiting to ask for her hand in marriage.

After nine long years, the day had finally arrived when he could speak his heart’s desire. He led his pretty lady by the hand to a private garden filled with many beautiful roses. He dropped to one knee, looked up to her and said, “My darling, I love you. Will you marry me?” The lady looked at him with love in her eyes and replied, “Pardon?”

Dream On

Do you dream of starting your own business? It’s not easy, but you can succeed if you follow this advice from the Entrepreneur magazine website:

• Keep your vision in sight. Most great businesses start with an ambitious vision. Decide what you want to create in clear, concrete terms, and keep your focus on your vision as you move forward.

• Be prepared to persevere. Establishing your business will take time and effort. Know that going in, and you’ll be ready to persist in the face of obstacles.

• Plan, but adapt. A good plan is essential, but don’t lock yourself into it so tightly that you can’t make changes along the way. Be flexible in how you achieve your goals, and you’ll move forward more smoothly.

• Know and use your talents. Take inventory of your skills so you can put them to good use. For whatever you don’t do well, delegate it or hire someone to do it for you.

• Don’t reinvent the wheel. Find out what others are doing in your industry, and copy their tactics and strategies. Don’t waste time developing something new when the real-world solution is right out there.

• Keep laughing. Times will sometimes be tough, but the ability to laugh at your mistakes and your luck (both good and bad) will keep you sane as you progress toward success.

Canadian Housing Starts – June, 2019

Canadian housing starts decreased by 13 per cent on a monthly basis in May to 202,337 units at a seasonally adjusted annual rate (SAAR). This decline follows a strong rebound reported in the previous month. The trend in Canadian housing starts was down, averaging 202,000 units SAAR over the past six months, which is still a robust trend.

In BC, total housing starts were up 8 per cent on a monthly basis to 53,352 units SAAR. Total starts were up 31 per cent compared to May of last year. On a monthly basis, starts of multiple units were up 12 per cent to 46,020 units SAAR, while single detached starts fell by 11 per cent to 7,332 units SAAR.

Looking at census metropolitan areas in BC:

  • Total starts in Vancouver were up 25 per cent on a monthly basis in May at 42,667 units SAAR, as multiple unit starts rose by 29 per cent from the previous month. Compared to last year in May, housing starts in Vancouver were up 60 per cent.
  • In Victoria, housing starts were down by 57 per cent on a monthly basis to 2,311 units SAAR, mostly due to a decline from last month’s spike in multiple unit starts. Compared to a year ago, housing starts are down 28 per cent.
  • In Kelowna, starts increased by 28 per cent on a monthly basis, though were still relatively low at just 1,025 units SAAR. Year-over-year, total starts were down by 72 per cent as inventory of unsold units accumulate, constraining further new construction projects. This is the risk we outlined when the provincial speculation tax was introduced.
  • Housing starts in the Abbotsford-Mission were up by 76 per cent in May at 1,772 units SAAR. However, on a year-over-year basis, new home construction was up more than double due to strong multiple unit starts.

For more information, please contact:  Gino Pezzani.