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City of Vancouver Approves The Broadway Plan


 

From: The Daily Hive:  https://dailyhive.com/vancouver/broadway-plan-vancouver-approved

 

After six public meetings — which spanned several weeks, and heard from hundreds of public speakers — and then going through dozens of amendments, Vancouver City Council has approved the final form of the Broadway Plan.



Cost of Construction Hit By Inflation


From: Western Investor:

Glass price increase adds to construction cost pressures

Contractors pushed to the brink as insolvencies loom

vancouver-condosGlass is a defining feature of highrise towers, and prices are poised to reach new heights in BC with a 40 per cent increase this month.

Glass suppliers hit the B.C. construction sector with a 40 per cent increase in the price of glass this week, adding to what many builders say are unsustainable cost increases that could lead to a wave of insolvencies.

Guardian Glass gave notice to customers on June 14 that it was raising the price of clear glass 40 per cent effective June 20. Tinted glass will increase 25 per cent.

Other suppliers quickly followed suit.

Guardian declined comment on the increase, which contractors say is impossible to absorb. Combined with cost increases for other materials, it puts the entire production chain at risk, said Craig Enns, vice-president and area manager with EllisDon Corp. in Vancouver.

“The scale of the increases now is such that no matter how good or honourable a trade you are, you can’t absorb a 20 per cent glass increase overnight and still honour your price. Those margins just don’t exist,” Enns said during a June 16 panel discussion regarding construction costs hosted by commercial real estate association NAIOP.

 

Glass isn’t the only cost that’s increasing. Statistics Canada’s Industrial Product Price Index reports that lumber costs remain 87 per cent higher than in January 2020, while the prices for fabricated metal products and other construction materials have increased 43 per cent.

Drywall is up 55 per cent versus pre-pandemic levels, NAIOP was told.

Delivery timelines for almost all materials have doubled since the start of the pandemic, adding to cost pressures – if they even arrive.



We Are In the Inevitable Market Contraction Partially Brought on by Higher Interest Rates


May Sales were almost 13% below 10 year May averages.  Higher Interest Rates Are Slowing the Market But Inventory Levels Are Not Rising So Don't Expect Prices to Fall Immediately.  

 

 From The Real Estate Board of Greater Vancouver:  

Spring ushers in calmer housing market trends in Metro Vancouver

 

After reaching record-setting levels in 2021, home sale activity has returned to more typical seasonal levels in Metro Vancouver this spring due, in large part, to rising interest rates.

 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,918 in May 2022, a 31.6 per cent decrease from the 4,268 sales recorded in May 2021, and a 9.7 per cent decrease from the 3,232 homes sold in April 2022.

 

Last month’s sales were 12.9 per cent below the 10-year May sales average.

 

“With interest rates rising, home buyers are taking more time to make their decisions in today’s housing market,” said Daniel John, REBGV Chair. “Home buyers have been operating in a frenzied environment for much of the past two years. This spring is providing a calmer environment, with fewer multiple offer situations, which is allowing buyers to explore their housing options, understand the changing mortgage market, and do their due diligence.”

 

There were 6,377 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in May 2022. This represents a 10.5 per cent decrease compared to the 7,125 homes listed in May 2021 and a 4.4 per cent increase compared to April 2022 when 6,107 homes were listed.

 

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,010, an 8.8 per cent decrease compared to May 2021 (10,970) and a 13.8 per cent increase compared to April 2022 (8,796).

 

For all property types, the sales-to-active listings ratio for May 2022 is 29.2 per cent. By property type, the ratio is 18.3 per cent for detached homes, 35.5 per cent for townhomes, and 38.1 per cent for apartments.

 

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

 

The MLS® Home Price Index* composite benchmark price for all residential properties in Metro Vancouver is currently $1,261,1001. This represents a 14.7 per cent increase over May 2021 and a 0.3 per cent decrease compared to April 2022.

 

“Upward pressure on home prices has begun to ease in the housing market over the last two months,” John said. “Where home prices go next will depend on housing supply. While we’re beginning to see modest increases in home listings, we still need housing supply totals to more than double to bring the market close to balanced territory.” 

 

Sales of detached homes in May 2022 reached 793, a 44.1 per cent decrease from the 1,419 detached sales recorded in May 2021. The benchmark price for a detached home is $2,093,600. This represents a 15 per cent increase from May 2021 and a 0.4 per cent decrease compared to April 2022.

 

Sales of apartment homes reached 1,605 in May 2022, a 21.7 per cent decrease compared to the 2,049 sales in May 2021. The benchmark price of an apartment home is $779,700. This represents a 15 per cent increase from May 2021 and a 0.4 per cent increase compared to April 2022.

 

Attached home sales in May 2022 totalled 520, a 35 per cent decrease compared to the 800 sales in May 2021. The benchmark price of an attached home is $1,141,200. This represents a 21.5 per cent increase from May 2021 and a 0.6 per cent decrease compared to April 2022.     
 

Download the May 2022 stats package.

 

*MLS® Home Price Index 2022 update

 

The national MLS® Home Price Index (MLS® HPI) methodology was updated during an annual review of the model in May. In line with best statistical practices, the MLS® HPI is reviewed each year.


Under the new methodology, benchmark attribute data is derived from data collected from the previous five-year rolling period. Benchmark prices are also now based on current benchmark attributes instead of linking benchmark prices to historical benchmark attributes.


In the annual review, coverage was extended to neighbourhoods where sales volumes picked up enough to support benchmark price tracking and discontinued for neighbourhoods where sales became too sparse to support benchmark price calculations. Read more about these changes.


Due to new housing development, REBGV also expanded the boundaries of the Brentwood neighbourhood in Burnaby, which affected the typical home associated with that area, Central Burnaby, and Parkcrest.


To ensure the MLS® HPI coverage is consistent and comparable, the MLS® HPI historical aggregate and composite data was recalculated based on revised and consistent coverage.

 


British Columbia Property Tax Due


Courtesy of The Real Estate Board of Greater Vancouver

 

Property taxes 101

At a glance (3 minute read)

  • Property taxes are due in early July. 
  • Apply for the Home Owner Grant before the deadline to avoid penalties.
  • Multiple Home Owner Grants are available - see the article for details on how to claim them.

Property taxes are due in early July.

Property owners who haven’t received a tax notice should contact their municipal finance department.

New property owners who don’t receive a tax notice, or received a tax notice with the previous owners’ name(s) on it, should:

  • contact the BC Land Title and Survey Authority at 604-630-9630 for a Certificate of Title to prove ownership; and
  • complete the Home Owner Grant application available online in most municipalities.

Check the due date

Property taxes must be paid and the Home Owner Grant claimed by the due date to avoid late penalties.

Reduce your taxes with the Home Owner Grant

Canadian citizens and landed immigrants who are permanent residents and whose home is their principal residence may be eligible to claim the Home Owner Grant.

There are several types of grants including the:

Apply for your grant here.

Submit your grant documents online here.

Check your grant application status here.

Change your grant application here.

Deferring taxes

A low-interest loan program lets qualifying property owners defer part, or all, of their property taxes on their principal residence.

The two programs allow deferment:

Home owner grant amounts

The regular grant amount is $570 for properties located in the Capital Regional District, the Metro Vancouver Regional District and the Fraser Valley Regional District. For all other areas of the province the amount is $770.

The grant threshold is the maximum value of an assessed or partitioned property where home owners are eligible to claim the full home owner grant.

Grant threshold for 2022

The threshold is $1,975,000. You may be able to claim the full regular grant amount if your property has an assessed or partitioned value of $1,975,000 or less.

If you meet all requirements but your property’s assessed or partitioned value is over $1,975,000, you may qualify for a grant at a reduced amount.

The grant is reduced by $5 for each $1,000 of assessed value over $1,975,000. This means properties assessed up to $2,089,000 ($2,129,000 in a northern and rural area) can receive a partial regular grant.

For the additional grant, properties assessed higher than $2,144,000 ($2,184,000 in a northern and rural area), are not eligible for a Home Owner Grant.