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VANCOUVER, B.C. – Aug 5, 2008 – As property listings continue to outpace sales, Greater Vancouver housing prices have drawn back, the last two months, from the record highs experienced in early 2008.

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

The overall benchmark price for all residential properties in Greater Vancouver has declined 2.1 per cent since the end of May 2008, from $568,411 to $556,605 in July 2008.

“We’re seeing more price reductions in properties listed on the market, which is having a levelling impact on the housing price increases experienced at the end of last year and into the first quarter of 2008,” said Real Estate Board of Greater Vancouver (REBGV) president, Dave Watt. “There was a slight decline in the total active listings on the market in July compared to June, which is a welcomed departure from recent trends.”

Residential property sales in Greater Vancouver declined 43.9 per cent in July 2008 to 2,174 from the 3,873 sales recorded in July 2007.

New listings for detached, attached and apartment properties increased 24 per cent to 6,104 in July 2008 compared to July 2007, when 4,924 new units were listed.

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

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

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

Title fraud made its way into the media headlines earlier this summer, creating an unhealthy climate of fear that unnecessarily worried land owners. REALTORS® felt the heat too, as their buyers and sellers asked whether they and their properties were safe from fraud.

The facts are that BC’s land title system is one of the safest in the world, there is no pattern of increased title fraud and the Assurance Fund is available to compensate owners in the very unlikely case that they are financially affected by a title registration error.

There are more than 1.9 million active titles in BC. In the past 18 years, the land title system processed 15 million transactions—yet only two claims related to land ownership fraud and only 14 fraud claims related to lesser interests in land, such as discharges of mortgage, were paid out from the Assurance Fund.

The Land Title and Survey Authority is continually looking for ways to enhance the security of the system. If your client wants added protection, you can suggest these simple steps:

* Owners, via a lawyer or notary, may use the Activity Advisory Service provided by BC OnLine. It notifies the legal professional when an application affecting the owner’s title is made to the Land Title Office (LTO).

* Registry Agents can conduct title searches for homeowners wishing to check the status of their titles, and some agents may provide access to the Activity Advisory Service.

* An owner who doesn’t have a mortgage or agreement for sale registered on their title can apply for a Duplicate Certificate of Title through their lawyer or notary, or at an LTO. No sale, transfer, mortgage or agreement for sale may be registered while the owner holds that Duplicate Certificate (the Duplicate must be stored in a secure location, such as a safety deposit box, to avoid the considerable time and cost associated with replacing it).

For more information, visit www.ltsa.ca.

Market conditions have shifted. After five years of blockbuster activity and double-digit price growth, market conditions have slowed, and now favour buyers in many areas of the province.

Residential sales have declined 22 per cent in the first six months of this year, while available resale inventory has grown by 54 per cent to 57,000 active listings in June. In the Greater Vancouver board area, where longer-term data is available, inventory is at the highest level since 1998.

Home price appreciation observed from 2004 to 2007 is less attainable in today’s market, and sellers’ expectations for such gains should be tempered. More generally, in a market favouring buyers, prices generally increase at or below the level of inflation. While the average residential home price in BC increased at a healthy 6 per cent per year since 1981, large gains are often followed by periods of price stagnation. Over-optimistic pricing by sellers will only inhibit the timely sale of properties, adding to inventory levels.

Buyers have more homes to choose from now than in previous years, resulting in greater freedom to compare the attributes and prices of similar properties in the market before making purchase decisions.

Despite current buyers’ market conditions fuelled by housing affordability constraints and economic uncertainty, the economic and demographic backdrop in support of housing demand remains strong in BC. BC’s unemployment rate remains near record lows, while the labour force participation rate hovers near historical highs. Meanwhile, the province remains a favoured destination for new migrants, reflected in the third-highest population growth among provinces during the first quarter of 2008. However, challenges continue in the forestry sector, and eroded consumer confidence may also be playing a role in a pull back of consumer spending.

VANCOUVER, B.C. – July 3, 2008 –Increased property listings and moderating home prices have eased the Greater Vancouver housing market into a buyer’s phase. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 42.9 per cent in June 2008 to 2,425 from the 4,244 sales recorded in June 2007. 

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

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

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

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

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

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

      Apartments:   

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

      The Real Estate industry is a key economic driver in British Columbia. In 2007, 38,050 homes changed hands in the Board’s area generating $1.065 billion in spin-offs. Total dollar volume of residential sales set a new record at $22.25 billion and total dollar volume of all sales set a record at $22.77 billion. The Real Estate Board of Greater Vancouver is an association representing more than 9,600 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact Jamie Liu or visit www.jamieliu.net

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In the past few months, the real estate statistics shows a steady increase in housing supply across both Greater Vancouver and Fraser Valley areas. Under such an influence, the housing price is becoming more affordable, which is a good sign for many long awaiting first time buyers. As of the end of May 2008, there are 435 detached, 171 attached and 1010 apartment listings available in Vancouver West. The sales to listings percentage is 33%, 39% and 42% respectively. Compared to the same month a year ago, we had 292 detached, 162 attached and 799 apartment listings available. And the sales to listings percentage was 84%, 60% and 71% respectively. Based on the given statistics, we see a whopping 49% growth in the number of listings for detached units, an merely 6.2% growth for attached units and merely a 26.4% increase for apartment units. The number indicates that buyers are taking their time to purchase their dream homes. We might see a less vibrant yet a more affordable housing market in Q3 and Q4.

VANCOUVER, B.C. - June 3, 2008 - The Greater Vancouver housing market continued its re-balance between sales and listings last month. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 30.7 per cent in May 2008 to 3,002 from the 4,331 sales recorded in May 2007.

New listings for detached, attached and apartment properties increased 20.2 per cent to 7,390 in May 2008 compared to May 2007, when 6,149 new units were listed.

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

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

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

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

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

The Real Estate industry is a key economic driver in British Columbia. In 2007, 38,050 homes changed hands in the Board’s area generating $1.065 billion in spin-offs. Total dollar volume of residential sales set a new record at $22.25 billion and total dollar volume of all sales set a record at $22.77 billion. The Real Estate Board of Greater Vancouver is an association representing more than 9,500 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.realtylink.org.

^*In August 2004, the Greater Vancouver and Fraser Valley boards upgraded our existing MLS systems to a common system called MLSLink. MLSLink® HPI is the latest version of the Board’s Housing Price Index (HPI) and is designed to accommodate the MLS upgrade and improve the legacy HPI product. For more information on real estate, statistics, and buying or selling a home, visit www.realtylink.org.

For more information please contact:

Craig Munn, Assistant Manager of Communications
Real Estate Board of Greater Vancouver
Phone: (604) 730-3146 Fax: (604) 730-3102
E-mail: cmunn@rebgv.org

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The Economy

The Canadian economy slowed during the third quarter of 2007. Annualized growth in real gross domestic product (GDP) was 2.9 per cent, down from 3.8 per cent in the second quarter and 3.5 per cent in the first quarter. The strong Canadian dollar was a key factor that slowed GDP growth in the third quarter. The high dollar made imported goods less expensive, while making Canadian exports less competitive. As a result, net exports were a significant drag on the economy. Growth, however, is still much higher than the 1.5 per cent in the fourth quarter of 2006. Overall economic growth for 2007 is expected to be 2.6 per cent, with 2008 coming in at 2.4 per cent. The consumer side of the economy continues to grow, albeit at a slower pace. Personal expenditures were up an annualized 3.0 per cent during the third quarter of 2007, compared to 5.9 per cent in the second quarter and 3.4 per cent in the first. Despite the falloff, the consumer is still expected to bolster the economy into 2008. Interest rates still remain relatively low and should not put a significant drag on consumer spending. The continuing challenge for the

Canadian economy is the deterioration in net exports and manufacturing jobs, which have decreased by nearly 100,000 positions during 2007. A soft U.S. economy may mean further interest rate reductions for Canada’s largest trading partner, but it is unclear how aggressive the U.S. Fed will be in combating the lingering issues in the U.S. sub-prime housing market and whether further interest rate reductions will occur. Output of goods-producing industries fell by an annualized 0.35 per cent during the third quarter of 2007. The manufacturing segment fell by an annualized 2.8 per cent. Meanwhile, output of services-producing industries grew by an annualized 3.8 per cent during the third quarter. Wholesale trade, finance, construction, mining, accommodation and food services contributed to the increase. On the whole, it is anticipated that domestic demand will remain the engine of Canada’s economic expansion for 2008 and beyond. Consumer spending should stay vibrant thanks to high employment, income gains and low interest rates. On the downside, soft net exports and global insecurity pertaining to the subprime meltdown could be a larger issue for economic growth. It is expected that inflationary pressures will remain stable within the Canadian economy. Inflation was up 2.4 per cent in 2007. For 2008 inflation is forecast to be 2.3 per cent. Canada’s core inflation rate for 2007 increased just 1.7 per cent.

Mortgage Rates

Mortgage rates increased by about 100 basis points between the start and the end of 2007. The sub-prime mortgage loan crisis in the U.S. has continued to rock financial markets resulting in liquidity issues which have increased the costs of funding mortgages. Equity and financial markets have experienced additional

upheaval as many analysts and investors speculate on the possibility of the U.S. slipping into a recession. The ensuing flight to quality in financial markets has resulted in lower yields on government bonds, but has not had a large impact on posted mortgage rates.

The potential drag on Canadian GDP growth due to a potential U.S. economic slowdown, coupled with the tightening of Canadian credit conditions, and the high value of the

Canadian dollar will cause minor fluctuations in mortgage rates through 2008. Mortgage rates are expected to remain within 25-75 basis points of their current levels in 2008 and then stabilize throughout 2009. The one year posted mortgage rate is forecast to be in the 6.75-7.50 per cent range, while three and five year posted mortgage rates are forecast to be in the 7.00-7.75 per cent range in 2008.

Migration

Net migration (immigration minus emigration) was up by about 5.4 per cent to under 228,000 people during 2007. In 2008, net migration is expected to increase to approximately 235,000 migrants. These levels will continue to support Canada’s housing demand. For the most part, newly arrived immigrants initially settle in rental accommodations, and, over time, an increasing share will move into home ownership. Net inter-provincial migration to Alberta, British Columbia and Saskatchewan will continue to support demand for both rental and ownership housing in these provinces in 2008.

Employment and Income

For 2007, employment grew at a healthy pace of approximately 2.3 per cent. On a comparative basis, 2006 experienced 1.9 per cent growth with most of the new jobs created as full time positions. A record share of Canadians was employed during 2007, which helped the unemployment rate to move below 6 per cent some months.

The Canadian economy is at or near full employment. Accordingly, the pace of employment growth is expected to slow during 2008 to a pace that is more in line with that of the general population. Employment is forecast to grow by 1.5 per cent and the unemployment rate is likely to remain in the low 6 per cent range for 2008. While these are positive developments in Canada’s labour markets, current economic conditions do pose some risks. In particular, Canada’s manufacturing sector is presently experiencing some weakness due in large part to a strong Canadian dollar. Accordingly, this sector will have some uncertainty with respect to employment and income as 2008 progresses forward. Despite this caveat, Canada continues to experience tight labour market conditions, which has had led to strong growth in average weekly earnings, especially in western Canada. Overall, more moderate income and employment growth will limit the expected decline in demand for new and existing homes this year.

Source: CMHC First Quarter 2008

New home construction in 2007 and 2008 can be described as buoyant by historical standards. For 2007, housing starts in Canada were up 0.4 per cent to 228,343 units over 2006’s 227,395. Seven out of the ten provinces saw housing starts move higher in 2007. Saskatchewan led the way with a 61.7 per cent increase. Housing starts were also up in PEI, Manitoba, Quebec, New Brunswick, B.C., and Newfoundland and Labrador. However, for 2008 only Ontario, Newfoundland and Labrador and Manitoba are forecast to have increases in starts. Residential construction will begin to trend down in 2008 to 211,700 units, a 7.3 per cent decline from 2007. Despite the fall, 2008 will be the seventh consecutive year in which housing starts exceed the 200,000 unit threshold. For 2009, 204,700 units are forecast to be built. Continuing high employment levels and rising incomes will provide a solid foundation for strong housing markets. Despite this, several factors will cause construction activity to ease. Most, if not all, of the pent-up demand that built up during the 1990s has now been fulfilled and residential construction activity will gradually move in line with Canadian demographic fundamentals. In addition, higher mortgage carrying costs due to price growth will temper housing demand, particularly among first-time buyers who are more sensitive to the widening gap between the cost of renting and home ownership. Moreover, competition from the existing home market, particularly in the central and eastern provinces where housing markets are more balanced, will give homebuyers more choices. This, in turn, will dampen spillover demand from the existing market into the new home market. Lower demand for new homes is already being felt in the majority of central and eastern Canada. Accordingly, the demand for new homes has slowed in Ontario and Atlantic provinces, excluding Newfoundland and Labrador, which will translate into a decline in housing starts heading into 2008. Out west, housing starts in Saskatchewan and Manitoba experienced strong growth in 2007, while the increased cost of homes in Alberta and British Columbia had a dampening effect in those provinces. For 2008, only Manitoba will see an increase in starts, of about 1.1 per cent. The same holds true for 2009, with Manitoba at 1.7 per cent growth and the rest of Canada’s western provinces negative.

Single detached starts to trend lower in 2008

Single detached starts peaked at 129,171 units in 2004, their highest level since 1987. In 2007, single starts were notably lower at about 119,000 units. The strongest declines in single starts were in Alberta and British Columbia. Single detached construction activity is forecast to fall 10.6 per cent to about 106,300 units in 2008, and then an additional 4.9 per cent fall to 101,100 units in 2009. Starts of single-detached homes will rise in just two out of ten provinces across Canada in 2008; starts in Manitoba are forecast to grow by 3.7 per cent while in Newfoundland by 0.7 per cent. The largest decrease will be in Alberta, where single detached starts will fall by an estimated 17.3 per cent. Following Alberta is British Columbia’s decrease at 14.5 per cent. Heading into 2009, the downward trend will continue, with only Newfoundland and Manitoba pushing out gains of 2.3 and 2.5 per cent respectively. Multi-family starts will begin to slow in 2008 Starts of multiple family homes increased during 2007 by 3.2 per cent to 109,426 units. This segment is forecast to slow during 2008 and 2009 where growth will be negative both years at -3.7 and -1.7 per cent respectively (105,400 units for 2008 and 103,600 for 2009). The slower decline in multiple starts, when compared to single starts, reflects a continuing shift in demand toward less expensive homes. This is especially true in Western Canada, where rising house prices have pushed overall mortgage carrying costs higher. In fact, British Columbia and the Prairies, where growth in house prices has been the strongest, saw an increase in multi-family housing starts in 2007. Conversely, Ontario and the Atlantic region experienced a decrease in multi-family starts as growth in house prices moderated during 2007. Apartment starts, which account for two-thirds of total multi-family starts, moved up by 1.3 per cent in 2007. They are expected to decrease by 2.4 per cent for 2008 and then rebound by 1.1 per cent for 2009. Starts of row houses grew by 11.1 per cent during 2007 and are forecast to fall by 7.6 per cent in 2008 and 4.6 per cent for 2009. Starts of semi-detached houses grew by 0.5 per cent during 2007, but will fall by 3.9 per cent during 2008 and 11.2 per cent during 2009.

MLS®1 sales set to establish a new record for 2007

Existing home sales as measured by the Multiple Listing service (MLS®), are expected to increase during 2007 by 7.6 per cent to approximately 519,722 units, surpassing the previous record level of 483,344 set in 2005. In 2008, MLS® sales are expected to decrease by 3.9 per cent to 499,650 units reflecting moderating demand due to rising mortgage carrying costs. Despite this forecasted decline, MLS® sales in 2008 will be at their second highest level on record. During 2009, continuing moderation is expected with growth falling by 2.3 per cent to 488,300 units.

House price gains will remain strong in 2008

The average MLS® house price is expected to grow by 10.6 per cent for 2007, to about $306,000 as strong sales in Western Canada continue to put pressure on prices. In 2008, existing home markets will become more balanced and price pressures will begin to ease. The average MLS® price will increase by 5.2 per cent to about $322,000 in 2008. Looking ahead to 2009, the average MLS® price is forecast to increase by 3.8 per cent to approximately $335,000.

Source: CMHC First Quarter 2008