Several articles about the future of the BC real estate market peaked my interest this month. These articles were positive about the long-term future of BC real estate.

The first article, found in Ozzie Jurock's Insider newsletter, cites a study written by the Urban Land Institute based in Washington, D.C.: Global Demographics 2009: Shaping Real Estate’s Future. The study looks at the effects of population, urbanization and aging on real estate. According to the study, the echo baby boom generation (born early to mid-80's) will be getting into the property game in the next two decades. This generation is as large (or larger) a segment of the population than the baby boomers were and will have a huge impact on property values in the coming years. The echo generation getting into the property game, combined with the downsizing of the aging baby boomers, should result in increased pressure on the urban condo and townhome market. According to the report, the demand for suburban mansions and subdivisions will be overtaken by demand for smaller homes and condos that are in walkable communities, close to amenities and jobs. The report named Canada as one of the countries with "attractive real estate investment and development prospects once the recession subsides," and mentions western Canada as an area of promise.

On the recreational front, both Royal LePage and RE/MAX released reports on the current trends in Canada. Royal LePage reports that 64% of Canadians still view recreational property as a good long term investment and 55% of us would be willing to make compromises in order to attain the goal of owning a cottage (ie. rent it out, share with other families, etc...). The top three desires of potential cottage owners in BC? Peace and quiet, access to utilities and four-season use. RE/MAX, meanwhile, cites the importance of Gen X(30-45yrs old) in the current recreational property market. Their Youtube video states that in over 74% of rec areas across the country, this demographic is currently driving the market. According to RE/MAX , these buyers are looking for good value and opportunity (ie. my interpretation "deals"). I concur with this as we have been noticing very value driven buyers on the site in the last 6 months.

So overall, it seems that well-chosen and priced B.C. real estate is a solid investment for the long-term. According to the above reports, whether you are looking to invest in an urban condo, townhome or a quiet lakeside retreat, there should be plenty of demand for both once the recession lets up. In the meantime, keep your eyes open for deals (next fall/winter...?).

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Well, we noticed it staring waaay back in February but interest in BC real estate has picked up from the slow summer and fall of 2008. At Waterfront West, we have the advantage of being able to see the interest pick up before the sales start to come through. Back in February, we noticed an increased number of inquiries going through the site. Now this is fairly normal for February, but this time, the inquiries seemed to be more serious than the ones from last Spring. Now that the stats are coming out, we are starting to see the sales as these serious buyers  make deals.

In Oak Bay, one of the most prestigious areas in Victoria, 50% of the listings are selling, while in some other popular areas (Fairfield, Maplewood, Glanford, etc..) well over 50% and in some cases 100% of listings are selling. Even we are shocked by news of bidding wars so soon. In Vancouver, Ozzie Jurock mentions a case of a lot coming up for sale in Kitsilano for $800, 000 and going through a bidding war between 15 different buyers to sell for $840, 000. Meanwhile, here in the Comox Valley there we are aware of at least one bidding war last week on an under priced property.

A good hint for judging the market in any area you are looking to buy is to go on Twitter and do a search for your key words. Here is what we turned up by searching Vancouver real estate today:

"There were 114 New Listings and 90 Sales (Sell/List of 79%) of homes in the Vancouver real estate market on Wednesday April 29th, 2009."

"Another day with nearly 1:1 list to sale ratio in the City of Vancouver real estate market. 6 calls already on my new east van house listing"

Victoria Real Estate:

"Our Real Estate Board is showing 747 Unconditional Sales on MLS in April in Victoria..Buyers are taking advantage of lower Interest rates"

This gives you real time results of what people are talking about in real estate. 

The real question is, is this activity just a blip in the market? A short Spring pick-up before we go back down hill? It's hard to know, but if you are selling, I would say don't get too greedy. The buyers out there today are quite savvy-after all they waited out that crazy market until prices came back down and they are buying at a time of very low interest rates.  Make sure you price competitively and that your home shines. If buying, the competition is out there for the good deals in larger cities so keep this in mind. In many areas of BC, you still have the upper hand for now, but who knows for how long?

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The developer of exotic property known as ‘Canada’s South Pacific’ is marketing 30 waterfront, mountaintop and park-side estate lots with a creative ‘anti-recession guarantee’.
 
Purchasers will be protected by a retroactive price adjustment if the real estate market continues to soften: The developer will carry up to 20% of the price as a first or second mortgage, part or all of which will be forgiven if government property assessments over a three-year term show a drop in land value.  On a $500,000 lot, the price protection could be as much as $100,000.
 
“There can be good news in a recession.” says Michael Thornton, Silver Spray developer.  “We would have priced these lots 30% higher in a normal market, and no one would have thought about protecting buyers with a price guarantee. Obviously we’re convinced such unique properties will only increase in value, and we’re demonstrating confidence by putting our money where our mouth is.”
 
The Silver Spray Lands are on a peninsula at the extreme southwestern tip of Vancouver Island.  They are nestled between scenic surf and sunset coastline and the largest waterfront wilderness park in the Capital Regional District, featuring six miles of virgin oceanfront, pristine beaches, and 30 miles of west coast hiking trails.  With such a rare diversity of ecosystems, it took over 60 public meetings to obtain low-density residential zoning and approval for a small golf course, marina and an exclusive destination resort.
 
Reservations will be held in priority with a 10% deposit in a lawyer’s trust account until the lots are serviced and subdivided, which is expected to occur in late 2009 or early 2010, so early purchasers can secure almost four years of price protection.  Sales will be made only by Disclosure Statement.

For more information, and to view photos online, go to: www.silverspray.com or contact Jason@silverspray.com (778.896.3370)
 

Silver Spray is the southwestern tip of Canada, just 26 miles southwest of Victoria on Vancouver Island.  Bordering a huge 3500-acre oceanfront Wilderness Park, this idyllic seaside community setting offers mild weather, spectacular scenery, abundant wildlife, end-of-road seclusion, and convenient access to shopping and amenities.

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