Tuesday, September 27, 2011

Just to remind ourselves where we are...

As we head into the September numbers, this is the most anticipated report since last fall. At that time we had high inventory, but dropping listings robbed of us of our correction.

This year we have higher inventory, but no let up in the listings flow and a real drop in the list/sale ratio. Good things better flow from this.

It is useful to know where we stand now. As you can see even though some areas are still on fire, there are other areas which are already down YOY... and this clears that awful post with the many fonts :)

From the recent BCREA report:

According to the BCREA survey, the average price in B.C. rose 10.7 per cent in August compared to August 2010 to $540,000 from $488,000.

However, price changes fluctuated sharply by region, with the Fraser Valley showing the sharpest increase of 19.7 per cent over the year, from $424,000 to $508,000.

Metro Vancouver prices rose 14.4 per cent from $681,000 to $779,000, while Victoria prices rose 13.7 per cent from $472,000 to $537,000. The rest of Vancouver Island showed a slight price drop.

However, Powell River showed the sharpest drop - 12.7 per cent, from $297,000 to $260,000 - while the Okanagan Mainline recorded a 0.3-per-cent drop in prices from $384,000 to $383,000 and the South Okanagan dropped 7.2 per cent from $331,000 to $307,000.

Year-to-date, it was more of the same, with B.C. recording a 14.7-per-cent price increase in the first eight months compared to the same period in 2010, Metro Vancouver recording a 19.2-per cent hike over that period and the Fraser Valley seeing a 12.6-per-cent increase.

However, the Okanagan Mainline saw a 2.5-per-cent decline in the six-month period and the South Okanagan recorded a 5.4-per-cent drop in prices.

Powell River saw an eight-per-cent drop in the six months, while Victoria recorded a 0.5-per-cent decline in the average price.

The Kootenay region recorded a 4.4-per-cent increase in August compared to August 2010, from $274,000 to $286,000, although the average price fell 3.5 per cent year-to-date.


  1. Told ya, the rope was too long and boomeranged. Its spin will swing upward of north49.


  2. Hey Fish

    Just talking to realtor friend who does property management.

    Says lots of HAM homes bought in West Van recently are on the market for rent, as 'investments'. Saturating the market with $5-6K homes.

    Lets do the math. $2.5 Million house. Rented at $60K a year. Take off the property management , and taxes and wear and tear, vacancy - and the net is $45 or so. That's less than 2% return. A new roof or major repair or bad tenants and you are looking at zero return.

    That money must be very HOT to require such little return.

  3. Banks still giving P-0.95 and P-0.9

  4. dont forget that property managers MUST keep 25% of the rent and return it to Canada Revenue Service, it is the law for all offshore investors that get rental income in Canada.
    Cap rates are miserable for real estate in this province. It makes no sense to invest based on that only.

  5. Anon 7.30 (dang guys make up a name)

    You are right they are required to keep 25%, unless they are told that the owner is a Canadian resident AND is submitting a tax-return.

    I would suspect that almost zero are actually holding and sending in the 25%. Either they are part-time, amateur managers or they will fall back on the "But I was told they are.."etc