The Metro Vancouver real estate market is witnessing a unique mix of factors influencing the housing landscape. Inventory is on the rise, with the first interest rate drop in years creating a dynamic environment. Along with these changes, prices continue to climb, even as sales dip below last year's figures.

“The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data,” Andrew Lis, GVR’s director of economics and data analytics said. “It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs, to worries about the economy, to policy interventions imposed by various levels of government.” 

Downsizing has been gaining momentum. Whether prompted by becoming an empty nester, a desire for more travel and a "lock and go" lifestyle, or financial considerations like reducing debt or withdrawing from the market, many people I talk to are looking at downsizing. However, the journey of downsizing isn't merely about moving to a smaller space; it's a process that involves careful consideration and planning. One common question everyone asks is "What do I do with all my stuff?"

In this article, I’ll delve into one effective strategy to kickstart your downsizing journey: the Room-by-Room Approach.

1. The Room-by-Room Approach

When faced with the daunting task of downsizing, it's crucial to break it down into manageable steps. The Room-by-Room method provides a structured approach, allowing you to tackle one space at a time. Here's how to get started:

2. Sort Through Items Room-by-Room and Minimize Duplicates

Begin by selecting a room to declutter. Whether it's the kitchen, bedroom, living room, or any other space, focus on one area at a time to prevent feeling overwhelmed.

Utilize the Three-Box Method to streamline the decluttering process. Label three boxes or bins as "Keep," "Get Rid Of," and "Put In Storage."

• Keep: Identify items that serve a practical purpose in your daily life. These are the essentials that you'll need in your downsized space. Once you've filled the "Keep" box in each room, pack it up and label it for easy relocation and unpacking.
  

• Get Rid Of: It's time to bid farewell to items that no longer serve a purpose or bring you joy. Be decisive in determining what to part ways with, considering whether the item is worn, broken, or simply unnecessary. Sort these items further by deciding what to donate, pass down to family members, or discard.
  

• Put In Storage: Certain items hold sentimental value or are only used seasonally. These belongings should be designated for storage. After decluttering each space, transfer sentimental or seasonal items into neatly labeled storage containers.
  

TIP: Keep an eye out for duplicate items in each space, particularly in clutter hotspots like the kitchen. Only retain your favourites or items in good condition, minimizing unnecessary duplicates.

By adopting the Room-by-Room Approach and the Three-Box Method, you can streamline the downsizing process and alleviate the stress associated with decluttering. Stay tuned for more tips and insights as we explore the journey of downsizing together. Remember, it's not about minimizing possessions; it's about simplifying life.

Happy downsizing!

Most of you know that I dedicate countless hours analyzing Greater Vancouver's real estate market along with the micro markets of North and West Vancouver. Though similar, each micro market holds unique characteristics, data, and trends crucial for property pricing, marketing and general understanding. Now, let's dive into recent news.

Interest Rates and Mortgage Trends:

The Bank of Canada has maintained interest rates, some “fence sitters” are now realizing that waiting for a rate drop might not pay off. That’s because real estate prices continue to go up. 3-year fixed-rate mortgages are most popular.  Most mortgage professionals tell me there will be no change in interest rate before July 2024, and even then it unknown if rates will increase, decrease or stay the same. It is impossible to predict.

Market Dynamics:

Low sales volumes and limited inventory are met home prices going up. Detached houses are in highest demand, with around one-third selling above the list price, while condos maintain a steady pace and townhouses remain robust.

Stability in Greater Vancouver:

Greater Vancouver stands out for its remarkable stability, offering a favourable environment for both buyers and sellers especially compared to other parts of British Columbia.

CRA & the Lenders:

CRA’s recent agreement with the Banks to share income verification information suggests stricter lending standards may be imminent. Considering the potential tightening of lending criteria, now may be the time to enter the market or expand your real estate portfolio. Lending will only get more strict.

Questions? I am always happy to chat about real estate.

In Greater Vancouver's strata communities, keeping up with evolving standards is key to smooth operations. Among the recent mandates is the Electrical Planning Report (EPR), a report aimed at helping stratas understand where they are with respect to Gas & propane energy consumption and how to move toward electricity consumption.

1. Understanding the EPR

The Electrical Planning Report (EPR) is a one-time assessment mandated for strata communities with five units or more. To comply,  Greater Vancouver's strata corporations must have an EPR by  December 31, 2026. The EPR would be attached to a strata unit’s Form B.

2. Scope and Purpose

The EPR aims to equip strata communities with a strategic plan, primarily focused on transitioning from natural gas and propane to electric systems. This includes evaluating HVAC, hot water, and EV car charging infrastructure.

3. Key Components of the EPR

The EPR includes critical elements:

• Current Electrical Capacity: Assessing existing capacity.

• List of Existing Electrical Demands: Identifying current demands.

• Peak Demands and Spare Capacity: Determining peak demands and assessing spare capacity if any.

• Capacity Requirements for Conversion: Outlining the electrical capacity requirements for transitioning to electricity.

• Requirements for Conversion: Outlining the required steps to meet that capacity. 

• Steps to reduce current electrical consumption: Recommending strategies like switching to LED lighting.

• Current available Upgrade Capacity: Exploring available enhancements.

4. Implementation and Compliance

Strata corporations must attach the completed EPR to Form B, ensuring transparency. Exemptions are only granted to strata of 5 units or less. Stratas must have a majority vote for the report to be created.

5. Risk of Non-Compliance

The absence of an EPR can lead to non-compliance, posing challenges in responding to owner requests for electrical upgrades. Stratas must address owner requests for EV charging, with a mandated response window of three months, and no unreasonable requests can be denied. So a strata will need an EPR in hand to respond quickly, thus avoiding disputes with owners.

6. Differentiating the EPR from EV Ready Plans

 EPRs and EV Ready Plans are two different things, although some overlap might exist.

In conclusion, the Electrical Planning Report (EPR) offers strata communities in Greater Vancouver a strategic roadmap towards transitioning from gas and propane to electric systems, ensuring compliance, sustainability, and smoother operations in the face of evolving energy standards.

Resourses

BC Govt Bulletin - Dec 2023

GV Realtors EPR Recap

Recently, a client asked me about the upcoming BC ban on short-term rentals and its potential impact on their basement Airbnb. It's a pertinent question, and I want to ensure you have clarity on how the new regulations may affect your property.

My client was concerned because she would have to shut down her basement suite Airbnb, which is a significant monthly income.

Here’s what I found out:

Beginning May 1, 2024, the Province of British Columbia is implementing a provincial principal residence requirement for short-term rentals. Here are the key points you need to know:

• Principal Residence Requirement: Short-term rentals will be limited to the host's principal residence. Additionally, hosts will be allowed to rent out one secondary suite or accessory dwelling unit.

In practical terms, if you are residing in the main part of the house and / or are renting out your basement suite, you are compliant with the new regulations.

Click these links to visit the official BC Government website:

• Short-Term Rental Legislation

• Short-Term Rentals Overview

If you know anyone who is renting out their basement suite in BC, please email this to them. 

If you have real estate questions, don't hesitate to reply to this email, I'm here to help.

Thank you for keeping me top of mind for real estate.

Disclaimer, this article is believed to be accurate, but check with the government to confirm any information.

The year 2023 brought unexpected twists to the Greater Vancouver real estate scene. Despite predictions of falling prices due to slow sales and rising interest rates, the market remained resilient. This article delves into the reasons behind these surprises and what they mean for the future.

Anomalies in the Market

Throughout 2023, the real estate market in Greater Vancouver didn't follow the usual script. Usually, when sales are low and interest rates go up, prices drop. But that didn't happen. Prices stayed steady, puzzling many experts.

One reason for this was the limited number of homes available for sale. Even though sales were slow and interest rates were climbing, there weren't enough houses on the market. This made it a tough competition for buyers, preventing prices from falling as expected.

Surprising Performance in Specific Areas

Despite the overall trends, some areas saw condo prices rise unexpectedly. Places like North Vancouver and West Vancouver saw increases, showing that different parts of the market can behave differently.

Lessons Learned and Looking Ahead

What can we take away from 2023? First, real estate doesn't always follow predictions. Second, it's crucial to stay flexible and ready for change.

As we look to the future, the market will continue to face challenges and opportunities. Economic shifts, new rules, and changes in buyer preferences will all play a role.

Conclusion

In summary, 2023 was a year of surprises for Greater Vancouver's real estate market. To succeed in this ever-changing landscape, staying informed, adaptable, and open-minded is key. Get in the market and stay in the market.

Key Datasets:

• North Vancouver (VNV):

  • MLS® HPI Price: $1,392,300 (October 2023)

  • Sales: 194 (October 2023)

  • Total Inventory: 606 (October 2023)

  • Sales to Active Ratio: 32% (October 2023)

• West Vancouver (VWV):

  • MLS® HPI Price: $2,658,100 (October 2023)

  • Sales: 53 (October 2023)

  • Total Inventory: 593 (October 2023)

  • Sales to Active Ratio: 9% (October 2023)

Comparative Analysis:

• Price Changes:

  • Over the past year, North Vancouver's MLS® HPI Price increased by approximately 4.5%, while West Vancouver saw a rise of around 3.4%.

  • In the last five years, North Vancouver's home prices surged by about 48%, whereas West Vancouver experienced an increase of approximately 38%.

• Sales and Inventory Changes:

  • In North Vancouver, the number of sales increased by 47% over the last year, with a 9% decrease in total inventory.

  • West Vancouver saw a decrease of 11% in sales and a 7% decrease in total inventory over the same period.

• Sales to Active Ratio:

  • North Vancouver has a Sales to Active Ratio of 32%, categorizing it as a seller's market.

  • West Vancouver, with a Sales to Active Ratio of 9%, is considered to have a balanced market.

Percentage Changes (1 Year Ago, 5 Years Ago, and 10 Years Ago):

• North Vancouver:

  • 1 Year Ago (October 2022):

    • MLS® HPI Price: +4.5%

    • Sales: +47%

    • Total Inventory: -9%

  • 5 Years Ago (October 2018):

    • MLS® HPI Price: +48%

    • Sales: +78%

    • Total Inventory: -18%

  • 10 Years Ago (October 2013):

    • MLS® HPI Price: +106%

    • Sales: +83%

    • Total Inventory: +28%

• West Vancouver:

  • 1 Year Ago (October 2022):

    • MLS® HPI Price: +3.4%

    • Sales: -11%

    • Total Inventory: -7%

  • 5 Years Ago (October 2018):

    • MLS® HPI Price: +38%

    • Sales: +16%

    • Total Inventory: -23%

  • 10 Years Ago (October 2013):

    • MLS® HPI Price: +50%

    • Sales: -51%

    • Total Inventory: -23%

Market Condition Analysis:

• North Vancouver is currently in a seller's market, indicating high demand and low supply. In contrast, West Vancouver's market is more balanced.

• Both areas have experienced significant price growth over the past decade, with North Vancouver leading in percentage increases.

• The Sales to Active Ratio in North Vancouver suggests a competitive market, while West Vancouver's ratio indicates a more stable environment. The most recent month's data in both areas appears typical of their recent trends, aligning with the broader market conditions observed over the past year.