british columbia q2 2008 residential sales summary

8/14/2019 British Columbia Q2 2008 Residential Sales Summary

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www.landcor.com

British Columbia Q2 2008

Residential Sales Summary

The Landcor Report Sept 2nd, 2008


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LANDCOR Data Corporation

#200 - 313 Sixth Street

New Westminster, BC Canada V3L 3A7

Landcor Data Corporation. Real estate data and analysis experts.

Dear Valued Data Users,

The best real estate decisions are made using comprehensive and reliable inormation.

Since our incorporation in 1987, Landcor Data Corporation has grown to be one o the most trusted

providers o objective real estate data and analysis in British Columbia. Last year, over $70 billion inresidential property values were pulled through our systems.

During the past two decades, weve helped thousands o clients achieve their goals by oering the mostcomprehensive data, analysis and insight available.

Our clients include a wide array o local, provincial, national and international nancial institutions,real estate brokers, strata corporations, property managers, landlords, insurers, government agencies,investors, academics, homeowners and the media.

From real estate valuation and analysis to land economics research and systems development, our sta ohighly qualied experts are here to help you nd solutions to your real estate analysis and data needs.

Landcor maintains the largest, most comprehensive database o historical sales and current inormationon BC residential and commercial markets. Unlike MLS data which includes only broker sales, Landcorsdata utilizes government land titles inormation which includes all registered sales MLS and non-MLS in British Columbia.

Founded by Rudy Nielsen, R.I. (B.C.) F.R.I., Landcor is a wholly owned subsidiary o the NIHO Group oCompanies.

Were providing this report in response to your interest in our company. The purpose is to provide market-wide trends or British Columbia based on available historical inormation. For urther inormation on whatLandcor can oer you and your business, contact Rudy Nielsen at 604-606-7914, or at [email protected].

For inormation about Landcors products and services, visit our website at www.landcor.com.

Thank you or your interest in Landcor Data Corporation and have a great day.

Yours sincerely,

Rudy Nielsen, R.I. (B.C.) F.R.I.

President & Founder

Contact Rudy Nielsen R.I. (B.C.) FR

Tel: 604-606-7914

[email protected]


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Q2 2008 Report Summary Buyers remain in the drivers seat.

Ater years o sky high prices, the market continues to cool, leaving buyers in the drivers seat or another quarter

As buyers continue to be selective, it has become more diicult to sell your home. I you are selling your home or i you plan to:Price smart the market may be cooling, but homes that are properly priced will sell.Market a quality product make sure your home is at its best, since it has to be in the top 60% o homes on themarket to move in a timely manner

Sell frst and then go looking i you do the opposite, you could be stuck with two mortgages, two sets o paymentstwo utility bills, two homes to keep up. Sell rst and then buy.

What lies ahead or us?

With Federal, Municipal and American elections ast approaching, these are interesting times or our economy and realestate market. Will prices continue to adjust or will the market regain its ooting in the coming months? Only time will tell andwe will continue to keep you up-to-date in our ollowing quarterly reports.

The numbers are in, and Landcor Data Corporation nds that the number o residential sales throughout the provincecontinues to decline. In turn, this is causing the total value o residential sales to drop in all BC markets or the rst time inve years. What does this mean or home buyers and sellers in BC?

Landcor Data Corporations Q2 Residential Market Analysis ound that:

Sales prices throughout the province have continued to adjust this quarter, with median price changes ranging rom1.-3.8% to 15.6%, depending on the region and property type.

Greater Vancouver -0.2% to 3.4%Okanagan -1.9% to 8.7%Kootenays 1% to 7%Fraser Valley -3.8% to 1.1%Vancouver Island -3.5% to 3.8%Northern BC 1.2% to 15 .6%

~ Figures noted above are median price comparisons from Q2 08 to Q1 08,ranging by property type

The lack o aordable detached single-amily homes has2.skewed buyer preerences in some regions.

Almost hal (48%) o all residential home buyers in BC chose

condominiums or attached homes, which is an increasing trend.Nearly two thirds (63%) o buyers in Greater Vancouver chose condominiums or attached homes.Almost hal (47%) o all Fraser Valley area buyers chose condominiums or attached homes.

Out-o-province purchasers remain hesitant about investing in BC, with purchases rom the United States and3.

the rest o Canada (non-BC) down 24% since 2007.However, Albertans made a come-back in the second quarter, up 36% over the total number o sales in Q1 08.

Stay tuned for more from Landcor Data Corporation

Landcor is currently working on two more special reports:

Using the power o Landcors industry renowned Property Valuator, we will assess i there arepockets o negative equity in BC.

Using BCs historic sales data unique to Landcor Data Corporation, we will analyze the impacto interest rate fuctuation on residential home sales since 1974.

Change in Median Sales Price, Q2 08 to Q1 08


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Total Number of Residenal Sales in BC - First Half of Year

Total Residenal Sales Volume in BC - First Half of Year Total Residenal Sales Volume in BC - Q1 and Q2

Total Number of Residenal Sales in BC - Q1 and Q2

The total number of residenal sales in BC is down in the rst

half of 2008 by 15.2% compared to the rst half of 2007, from75,788 to 64,268 total sales. This follows a 4.8% decrease from

the previous year, and has now fallen below 2004 levels. Note:

2006 was a record year for residenal property sales.

The total residenal sales volume in BC is down in the rst half of

2008 by 4.1% compared to the rst half of 2007, from $28.59 billion

to $27.4 billion in total sales volume. This follows a 10.5% increase

over the previous year, and sll well above 2006 levels. Note: 2007

was a record year for residenal sales value.

The total number of residenal sales in BC is down in the secondquarter of 2008 by 19.5% compared to the second quarter o

2007, from 45,459 to 36,612 total sales. Q1 08 was also dow

8.8% vs Q1 07.

The total residenal sales volume in BC is down in the second

quarter of 2008 by 11.6% compared to the second quarter o

2007, from $17.49 billion to $15.467 billion in total sales. This i

the rst decrease in total sales volume in the 5 years examined

(since 2004). However, Q1 08 was up 7.6% over Q1 07.

Q2 2008 - Provincial Overview

Provincial Overview


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Total Residenal Sales Volume by Property Type - Q2 per Year

Total Number of Residenal Sales by Property Type - Q2 per Year

All four property types saw the total number of residenal sales decrease this quarter, compared

to Q2 07. Detached and Vacant Land saw the greatest decrease, both over 23%. Condos saw

the least change year over year, with a decrease of 12.2%.

The total residenal sales volume decreased in each of the four property type categories

this quarter compared to last year. Vacant Land saw the greatest percentage decrease, at

almost 24%. Condos saw the smallest decrease in total sales volume at 2.5%. Detached

property sales volume was down a total of $1.26 billion (-12.8%) this quarter compared

to Q2 2007 (which was a record year).


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% Change in Total Number of Sales & Sales Value by Region - Q2 08 vs Q2 07

Every region saw a dramac drop in both volume and count in Q2 08 vs Q2 07. The

largest drop, by percentage, was in Northern BC, where the volume and count are

down 17% and 25%, respecvely. Fraser Valley saw the smallest decrease at only 8% in

volume and 14% in total sales count.


Stay tuned for more from Landcor Data Corporation

Landcor is currently working on two more special reports:

Using the power o Landcors industry renowned Property Valuator, we willassess i there are pockets o negative equity in BC.

Using the historic BC sales data unique to Landcor Data Corporation, wewill analyze the impact o interest rate fuctuation on residential home sales

since 1974.


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% Change of Number of Residenal Sales by Region - Q2 per Year

Total Number of Residenal Sales by Region - Q2 per Year

Residenal sales in Greater Vancouver slipped by over 2,900 in Q2 08 compared to

Q2 07. The Okanagan saw a substanal slip as well, down over 2,000 sales. The Fraser

Valley remained the most stable market, averaging around 5,000 sales in Q2 for the

past 5 years.

The Kootenays saw the largest percentage decrease in Q2 08 compared to Q2 07,

at -28.56%. The Okanagan had a comparable decline at -26.44%. Fraser Valley and

Greater Vancouver saw the smallest declines, both approximately -15% over Q2 07.



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% Change in Residenal Sales Volume by Region - Q2 per Year

Total Residenal Sales Volume by Region - Q2 per Year

Aer seeing increases in every region in the second quarter of 2007, this years second quarter saw every

region declining in total residenal sales volume. Greater Vancouver was down by more than $1 billion

this quarter, compared to last year. The Okanagan and Vancouver Island saw the second and third largest

declines, both down more than $330 million over the same period last year.

The largest decrease year over year occurred in BC Northern/Northwest, declining 17%; the

smallest decrease was in Fraser Valley, at -8% over Q2 07. The Kootenays saw the greatest net

change, going from a 36% increase in Q2 07 to a -11.84% decrease in Q2 08.



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% Change in Number of Residenal Sales by Region - Q1 08 vs Q2 08

Total Number of Residenal Sales by Region - Q1 08 vs Q2 08

The total number of residenal sales in BC is up across the province when compared to last quarter.

Greater Vancouver had the greatest regional increase, up over 3,200 sales compared to Q1 08. The

Kootenay region saw the smallest increase, up 649 sales over Q1 08.

Every region in BC saw an increase of over 25% in the total number of sales in Q2 08 compared to Q1 08. The

largest change was the Kootenay region, at over 62%, followed by BC Northern/Northwest at 56% and the

Okanagan and Vancouver Island, both increasing around 34%.



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% Change in Total Residenal Sales Volume by Region - Q1 08 vs Q2 08

Total Residenal Sales Volume by Region - Q1 08 vs Q2 08

Residenal sales volume across the province is up in Q2 compared to Q1. Greater Vancouver saw more than a $1.5

billion increase in total sales volume over the previous quarter. Vancouver Island and the Okanagan both increased

by more than $500 million. As the smallest region in the Province, the Kootenays saw the smallest Q2 increase over

Q1 this year, gaining only $168 million in total sales over the previous quarter.

The two regions with the smallest gains in total value saw the greatest percentage increase over last quarter BC

Northern/Northwest and the Kootenays, at 67.5% and 63.3%, respecvely. The same is true on the other end of the

spectrum, with Greater Vancouver seeing the smallest percentage increase over Q2 in total sales value, at 22%.



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% Change in Median Residenal Sales Price - Q2 vs Q1 per Year

Median Residenal Sales Price in BC - Q1, Q2 & Half Year - per Year

Although the total sales counts and sales volumes are down in BC this quarter, median sales

prices connued to increase this year. The median sales price of residenal property in BC in

the rst half of 2008 is up $46,668 compared to 2007. Q1 08 is up over $60,000 since Q1 07,

and Q2 08 is up almost $38,000 over Q2 07. The median sales price in BC is up about $3,000

in Q2 08 compared to Q1 08.

The second quarter of 2008 saw median prices increase a meager 0.7% over

Q1 08. In 2006 and 2007 BCs residenal real estate market posted Q2 median

price gains of over 7%. This years performance remains slightly above 2004s

Q2 vs Q1 change of -0.03%.



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% Change in Median Sales Price by Property Type - Q2 08 vs Q1 08

Detached homes were the only property category to post an increase in

sale price in the Fraser Valley, rising a meager 1%.

Median Sales Price by Property Type - Q2 08 vs Q1 08

The Fraser Valley has seen lile change in the median prices of residenal

properes in Q2 08 compared to Q1 08. Aached home median sales

price remained the same, while detached increased by $5,000 and condos

dropped by $9,000 over the previous quarter.

Q2 2008 - Regional Overview - Median Sales Price

Fraser Valley


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Detached homes in Greater Vancouver increased $20,500 in median price over

the previous quarter, followed by aached homes at $13,430. Condos headed in

the other direcon, slipping slightly by $550 over Q1 08s median sales price.



Detached and aached home median sales prices both rose 3% in Q2 08

compared to Q1 08.

Greater Vancouver


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Detached gained a slight 1% over the previous quarters median sales price,

while aached prices gained 7% and condos almost 5%.

The Kootenays saw all three property types increase in value this quarter

compared to Q1, but all net out in the mid-high $200K range. There is less

than a $23,000 dierence between the median sales price of a detached

home and a condo in the Kootenay region this quarter.

Q2 2008 - Regional Overview- Median Sales Price

Kootenay


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The most aordable market in BC is again the Northern region, where the median

sales price of a detached home remains under $250,000. This causes the majority

of buyers to select detached homes, which increased less than $2,500. Condos and

aached homes, which have less supply and demand here, increased $15,900 and

$13,250 over the previous quarters median sales price, respecvely.



The largest median sales price quarterly percentage increase in the North this quarter

was condos, up 15.6%. Aached homes were up just under 9%, while detached held

steady with an increase of only 1%.

BC Northern/Northwest


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The median sales price of Okanagan condos increased nearly 9% in Q2 08,

while detached and aached homes gained and lost 2%, respecvely.


Condos in the Okanagan gained an impressive $22,395 over the previous

quarters median sales price. Detached followed at $7,750 and aached took

a dip, losing $6,300 in value.


Okanagan


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Detached home sale prices made the largest gains in Q2 08, increasing $15,100

over the previous quarter. Condos dipped $10,000 and aached remained nearly

the same, up only $1,000. Prices on Vancouver Island are very similar to those in

the Okanagan.



Detached and condos gained and lost almost 4%, respecvely, while aached

posted an increase less than 1%.

Vancouver Island


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Share of Purchases - Detached homes vs Aached and Condos - BC ALL

We found that overall in BC, people had a slight preference for detached homes, accounng for

52% of total residenal sales in BC this quarter. As illustrated above, this preference is depleng

year over year, mainly inuenced by the decreasing aordability of detached homes in most

areas of BC.

Q2 2008 - Property Type Preferences

We were interested to see if the property type preferences of residenal property purchasers

had changed across the province this quarter. With the sky high price of detached homes, we

decided to examine whether people have turned to more aordable opons, such as condos

and aached homes.

Property Type Preferences


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Share of Purchases - Detached homes vs Aached and Condos - Fraser Valley

As house prices have increased in the Fraser Valley, it

evident that the preference for detached homes has slippefrom 65.26% of all homes purchased in Q2 2004 to 52.51%

Q2 08. In Q2 08 there were 555 less detached homes sold

the Fraser Valley, while aached homes and condos increase

by 74 purchases, compared to Q2 07.

Share of Purchases - Detached homes vs Aached and Condos - Greater Vancouver

As may be expected, condos and aached homes accou

for the majority of residenal property purchases in Great

Vancouver. The decreasing aordability of detached homes

forcing families to purchase aached homes and condos, rath

than detached properes. In the second quarter of 2008, almo

63% of purchases were aached homes and condos whi

detached homes accounted for only 37% of all purchases.

Share of Purchases - Detached homes vs Aached and Condos - Kootenays

With more reasonable detached home prices in the Kooten

region, 64% of residenal property purchases in Q2 08 we

detached homes. Though only 36% of purchases this quart

were condos, this segment has increased year over year

popularity.


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Share of Purchases - Detached homes vs Aached and Condos - Northern BC

Due to the lack of condo inventory in the North and the

aordability of detached homes, the vast majority o

residenal purchases in Q2 08 were detached homes atrend that has remained constant from previous years.

Share of Purchases - Detached homes vs Aached and Condos - Okanagan

In the Okanagan region, condos are growing in popularity

though they sll do not account for the majority of residena

property purchases. 62% of sales in Q2 08 were for detached

homes.


Share of Detached homes vs Aached and Condos - Vancouver Island

Residenal property purchasers on Vancouver Island maintain

a strong preference for detached homes, with over 66% of

residenal purchases in Q2 08 being detached homes.


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Total Number of Residenal Sales Purchased from Outside of BC - Q2 08 vs Q2 07

Out-of-province purchases are down in Q2 08 from US and Canadian investors.

Alberta remains the largest out-of-province purchaser of BC property. Due to

a change in currency values and a declining US economy, purchases from the

United States are down 40% in Q2 08 compared to Q2 07. Alberta and Ontario

buyers have also declined by 21.52% and 28.19%, respecvely.

Q2 2008 - Out-of-Province Sales Overview

Total Number of Residenal Sales Purchased from Outside of BC - Q2 08 vs Q1 08

Comparing the rst two quarters of 2008, Alberta purchases have increased

by 348. Purchases from the United States have remained steady, while Ontario

buyers decreased slightly.

Out-of-Province Buyers


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Total Value of Residenal Purchases from Outside of BC - Q2 08 vs Q2 07

Total Value of Residenal Purchases from Outside of BC - Q2 08 vs Q2 07

The total value of out-of-province purchases is down in the second quarter of 2008

compared to the same quarter in 2007. Though they spent less in Q2 08 compared

to the previous year, Albertans sll spent close to a half of a billion dollars in BC this

quarter. US buyers, however, spent almost half of what they did the previous year.

Comparing the rst two quarters of 2008, the total value of Alberta purchases

has increased by $113 million.


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Total Number of Residenal Purchases by Albertans by Property Type - Q2 08 vs Q2 07

Of those properes purchased by Albertans in Q2 08, buyers preferred condos. This property

type was the only one to increase in total number purchased in Q2 08 compared to Q2 07.


Total Value of Residenal Purchases by Albertans by Property Type - Q2 08 vs Q2 07

Alberta purchasers spent more on BC condos than they did on detached homes this year.

Another shi in purchase preference is Vacant Landdeclining 46% in Q2 08 compared to

Q1 08.

Alberta Buyers


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Total Value of Residenal Purchases by Albertans by Property Type - Q2 08 vs Q1 08


Total Number of Residenal Purchases by Albertans by Property Type - Q2 08 vs Q1 08

Of those BC properes purchased by Albertans this quarter, buyers preferred condos.

Vacant Land and detached homes were also scooped up by Albertans this quarter.

Albertans spent 63% more on condos and 42% more on detached homes in BC

this quarter compared to Q1. Their investment in BCs vacant land decreased 19%

in Q2 08 compared to Q1 08.


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Locaon of BC Properes Purchased by Albertans - Q2 08


Locaon of BC Properes Purchased by Albertans - by Region - Q2 08 vs Q1 08

Alberta purchasers in Q2 08 focused their investment in the Kootenay and Okanagan

regions. Surprisingly, Fraser Valley out-of-province purchases dropped o compared

to the Q1 08, decreasing 63%.


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BCs residential real estate market continues to ndits ooting this quarter, with the number and value oresidential sales slipping across the province. Whencompared to Q1 08 residential sale prices, median saleprices in Q2 made only moderate gains, and in someareas even declined.

Despite this recent breather in BCs residential market,potential buyers still experienced diiculties in ndingaordable single amily homes in some regions, causingproperty preerences to shit to more inexpensiveoptions, such as condos and attached homes.

In addition, out-o-province purchasers continued tostay home, with a trend o lower sales when comparedto previous years. However, interest rom Alber ta pickedup in the second quarter o 2008, with higher salegures than the previous quarter.

With political change on the horizon, the immediateuture remains uncertain. However, trust Landcor tokeep you up-to-date with accurate, timely data on BCsever changing real estate market.

Summary

Methodology

Landcor maintains the largest and most comprehensivedatabase o historical sales and current inormationon the BC residential and commercial markets. Usingproprietary tools, Landcor sta analyze this inormation

to provide a clear understanding o the market. All salesdata encompass only arms-length transactions.

This report is the summary o all second quarter salestransactions occurring in the province o BC betweenApril 1st to June 30th o each year analyzed. Allnumbers are based on BC Assessments data availableas o August 12th, 2008.

Learn more

For inormation about the real estate market and trends,visit www.landcor.com.

Questions and inquiries

For questions about this report, or or consultationinquiries, contact Rudy Nielsen, President and Foundero Landcor Data Corporation at 604-606-7914or [email protected].

Glossary of TermsApartment:A single-amily occupied home located within a buildincontaining multiple units. Also known as a condominiumLandcor uses the BC Assessment eld Actual Use Typ

code 30 strata-lot residence (condominium).

Attached home:A single-amily occupied home attached by a commowall or walls to other like homes. Landcor uses the BCAssessment elds Actual Use Type 33, 34,35, 39, 4749, 36, and 41; including row housing, duplex, triplex

and ourplex structures.

Average price (also known as the mean):The price that results when all prices o properties in agiven area over a specic time period are added and thedivided by the number o properties in the distribution.

Detached home:A ree-standing single amily residential building, alsoknown as a Single Family Dwelling. Landcor uses thBC Assessment Actual Use Type codes 0, 32, and 60including those single amily dwellings, without or witbasements, or less than or more than 2 acres o land.

Median price:The price that is midway between the least expensiveand most expensive property sold in a geographic areaduring a specic time period. Hal o all property buyerpaid more than the median price and hal paid less thathe median price.

Other residential:Residential properties that do not t within the othedened residential property types. Landcor uses BCAssessment Actual Use Type codes 20, 19, 31, 3738, 40, 42, 43, 50, 51, 52, 53, 54, 55, 56, 57, 58, 5962, 63; including all residential outbuildings, stratalot residential parking and sel-storage, manuacturehomes, seasonal dwellings, multi-amily buildingsstratied rental townhouses or apartments and seasona

dwelling and manuactured homes on 2 acres or more.

Vacant Land:Property that does not contain a building structureLandcor uses the BC Assessment Actual Use Typecodes 1 and 61; including vacant land less than, equato or greater than 2 acres in size.


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Regional Boundaries

Greater Vancouver:

includes assessment area codes 8, 9, 10, 11,and 14

Vancouver Island:

includes assessment area codes 1, 4, and 6

Thompson Okanagan:

includes assessment area codes 17, 19, 20,and 23

Fraser Valley:

includes assessment area code 15

Northern BC:

includes assessment area codes 24, 25, 26,and 27

Kootenay:

includes assessment area codes 21 and 22

Northern BC

Kootenays

Vancouver

Island

Greater

Vancouver

Fraser

Valley

Thompson

Okanagan


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LANDCOR Data Corporation#200 - 313 Sixth Street

New Westminster, BC Canada V3L 3A7604-606-7914

www.landcor.com

This report is provided by Landcor Data Corporation (Landcor) as a courtesy or general inormation purposes.

Because the data in this report is provided to Landcor by the British Columbia Government and its various agencies, Landcor has no control over the accuracy o the data. The inormation in this document (the content) is thereore provided asis and a s available.

The content is provided without warranties o any kind, either express or implied, including, but not limited to, implied warranties o merchantability, tness or a particular purpose, or noninringement. Landcor, its subsidiaries, or its licensors are noliable or any direct, indirect, punitive, incidental, special or consequential damages that result rom the use o this content. This limitation applies whether the alleged liability is based on contract, tort, negligence, strict liability or any other basiseven i Landcor has been advised o the possibility o such damage. Because some jurisdictions do not allow the exclusion or limitation o incidental or consequential damages, Landcors liability in such jurisdictions shall be limited to the extenpermitted by law.

2008. All inormation herein is intended or inormation purposes only. While this inormation is believed to be correct, it is represented subject to errors, omissions, changes or withdrawal without notice.

british columbia q2 2008 residential sales summary

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