WESTSIDE 1 TOWNHOME DETACHED CONDOS $4,194, % INCREASE. Faith Wilson Group Presents VANCOUVER S MONTHLY RESIDENTIAL REAL ESTATE ANALYSIS

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1 WESTSIDE 1 Faith Wilson Group Presents VANCOUVER S MONTHLY RESIDENTIAL REAL ESTATE ANALYSIS JAN, FEB, MAR & Q1 18 TOWNHOME UNIT SALES Q1 18: Q4 17: Q1 17: DETACHED SOUTH GRANVILLE HPI Benchmark price: 4,194, % DECREASE vs. Q1 17 INVENTORY going into Q2 752 vs. Q % INCREASE INVENTORY going into Q2 7 vs. Q % INCREASE UNIT SALES Q1 18: 79 Q4 17: 88 Q1 17: 118 INVENTORY going into Q vs. Q % INCREASE YALETOWN HPI Benchmark price: UNIT SALES FALSE CREEK HPI Benchmark price: 1,798,0 875, % INCREASE vs. Q1 17 CONDOS Q1 18: 904 Q4 17: 9 Q1 17: % INCREASE vs. Q1 17

2 Spring Clouded by Audacious Tax Penalties Welcome to spring and what should be the beginning of another busy home buying season in Metro Vancouver. March is traditionally the signal for the season s start but it is clouded this year by the most outlandish tax grab in Canadian housing history. The British Columbia government has added a new level of residential taxes that distinctly and negatively affects Metro Vancouver homebuyers and homeowners. It is particularly targeted at the Westside of Vancouver but also affects other premiere communities. What New Homebuyers Can Expect For homebuyers there are higher taxes, immediately, on purchasing premium properties. The property transfer tax was already 3% on values of over 2 million. The February, 18 provincial budget added a new top rate of 5% on values above 3 million. The B.C. budget also increased the already punitive foreign-home buyer tax from 15% to % of the home s value, also immediately. Understanding The Increases In Residential Property Tax For homeowners, the 18 BC Budget layered two new tiers on top of the basic residential property tax, starting in 19. Under the new annual school tax, residential property valued above 3 million faces an additional tax of 0.2% for the first million dollars in assessed value. The tax increases to 0.4% for every million dollars above that. For example, a home worth 4 million would be subject to an additional 2,000 per year under the school tax. A home assessed at 5 million would pay an additional 2,000 on the first million dollars, plus 4,000 on the second million dollars for a total increased property tax of 6,000, annually. For thousands of Vancouverites who have sacrificed to own a nice house, this tax is a retroactive penalty that undermines affordability. B.C. s New Speculation Tax It gets worse for those who own a home in Vancouver that they do not occupy for more than six months of the year. B.C. s new speculation tax levies an annual 2% tax on assessed value for foreign owners of such seasonal property, a 1% tax on out-of-province owners and a 0.5% tax on British Columbians who own a second home in Metro Vancouver that they use occasionally. Owners of such Vancouver properties would also be subject to a 1% empty home tax levied by the City of Vancouver, It is not surprising, therefore, that first-quarter housing sales in Metro Vancouver fell to the lowest first-quarter level in five years, with March sales down nearly % from a year earlier. I am a Realtor and don t pretend to understand the political machinations that make such punitive home taxes possible. But I believe that punishing any British Columbian for working hard, saving hard, and who are helping to build this province is simply the wrong direction. Warmest Regards, Discover YOUR neighbourhood's real estate market activity, trends & benchmark pricing. Finding the right home in the right neighbourhood can be a challenge. That is why we have our exclusive Neighbourhood Profiles available for you on our web site. Each profile features: Information on the neighbourhood's schools, housing, recreation, shopping, restaurants, transportation and more. A summary of CURRENT active listings, arranged by property type and showing the number of units available and the median asking price. Up-to-date MLS HPI Benchmark prices AND price changes from one month to five years - a rich resource to instantly see the price trend of the type of home you are interested in, within your specific neighbourhood. To do so, visit FaithWilsonGroup.com and find out about Vancouver Westside, Eastside, Downtown, North Vancouver, South Surrey and Richmond neighbourhoods. With more coming soon. The information included in this report is based on residential sales data and statistcal information sourced and compiled from the Real Estate Board of Greater Vancouver s MLXchange database and the REALTOR Link website. The information is current as of March 1 st, 18 and is subject to change by the REBGV. Faith Wilson Realty Group Inc., makes no guarantees as to the accuracy of the information provided and is not responsible for changes, errors or omissions to this information. PAGE 2

3 Mortgage Rates Increasing in 18? Protect Your Purchasing Power The majority of economists expect that the Bank of Canada will continue to increase interest rates in 18. So what can you do to protect your home purchasing power in the face of increasing rates? Get pre-approved! This process provides you with an all-important interest rate guarantee should rates increase while you are shopping for a home. I suggest this even if you are just thinking about the idea of buying a new home now, since a pre-approved mortgage is absolutely free and carries no obligation to purchase. And you never know when that dream home might appear. With the housing market being this active, it is most important to be prepared when making a home purchase. If your mortgage is pre-approved with your rate locked in, you will know what you can realistically afford to pay for a home and, based on your current financial situation, you will know exactly how much you can borrow. Let s assume that you firmly intend to buy a house and you now need a mortgage. If you did not get pre-approved, and rates increased, you will now qualify for a lower mortgage. Simply put, when interest rates increase, your purchasing power decreases. Most financial institutions offer 1 day mortgage rate guarantees with the pre-approval. How does this work? Basically, todays interest rate, including any discount you receive, is guaranteed for 1 days while you shop for a home. If interest rates go up during that time, you automatically receive the guaranteed rate you have locked in. If you are lucky enough that rates go down before you complete your purchase, you get the lower rate. It is a winwin situation for you, courtesy of your financial institution. Some financial institutions, including RBC, offer mortgage rate holds for much longer periods of time if needed. This is the case if you have purchased a pre-sale, where the closing date of your purchase can be years away. Much can happen when waiting, say 24 months for your home purchase to complete, so it is very wise to obtain a firm approval and rate hold now. For people who have been timing their entry into the housing market or for those looking to upgrade their homes, the looming reversal in affordability trending may be a sign to act. With interest rates still near record lows, now more than ever, prospective homebuyers should speak to a mortgage specialist so they can feel confident about buying a home before rates increase. Next Step: Get solidly pre-approved and lock in todays rates. You will need to confirm your income, down payment amount and overall credit worthiness. Then you can shop with confidence when looking at homes that are within your budget, and act quickly and confidently when you find the right home. ~ Kevin Lutz, Regional Manager, Residential Mortgages Follow Kevin on Lorraine Gingras Mortgage Specialist RBC Royal Bank lorraine.gingras@rbc.com Stress Test Need Not Stall Move-Up Plans Bob and Jean have owned their Burnaby bungalow for seven years and planned to move up to a larger house as the children became older. With a good credit rating, a stable household income and % worth of equity in a house assessed at 1.5 million, the couple were surprised when they went to their bank for a pre-approved mortgage for their move-up purchase. Since the new mortgage stress test was introduced on January 1, the couple found that they could not qualify for the quality of home they really wanted. The Office of the Superintendent of Financial Institutions mortgage stress test requires that buyers with more than a per cent down payment must qualify at Bank of Canada s 5 year benchmark rate, which is currently set at 5.14%, or at the current contracted rate plus 2% whichever is higher. For Bob and Jean this meant that, despite never being late with a mortgage payment and willing to put down a substantial down payment, their purchasing power was reduced by about %. Planning to move up to a larger house worth 1.8 million to 1.9 million, they were told they could qualify at 1.5 million or less. In other words, the same house they already own. The stress test is meant to ensure buyers can afford a mortgage if lending rates should increase. However, a mere 0.16% of B.C. mortgage holders are currently in arrears, meaning they have missed three or more mortgage payments. This means just 1,008 out of 644,984 mortgage holders in B.C. are behind in mortgage payments. This is the second-lowest mortgage arrears rate in Canada and the lowest default rate among all other forms of consumer debt. Over the past 15 years, through fluctuating mortgage rates, Canada s overall mortgage arrears rate has never risen above 0.35%. So, logic aside, what can a move-up buyer do to achieve the home they want? Here is some advice from the Faith Wilson Group mortgage specialist: Remember that you only need to qualify at the higher rate, not actually pay it. The best five-year rate today is 3.49%, so even if the new stress test requires you to qualify at 5.14%, you would be paying the contracted rate of 3.49% on your mortgage once you qualify for the loan. Use the existing equity in the home to eliminate smaller debts, such as credit cards and car loans, to make your mortgage application more acceptable. (Note, however, that refinancing a home is also subject to the stress test at federally regulated lenders.) Consider taking the maximumallowed -year amortization on a noninsured mortgage, which will reduce your monthly payments compared to the convention 25-year amortization. The bottom line advice: talk to mortgage professional and you may find that, despite the stress-test, you can buy the move-up home you want and can afford nearly stress free. PAGE 3

4 JANUARY - SINGLE FAMILY DETACHED HOMES THE REAL WESTSIDE RESULTS: JAN 18 THE REAL NEIGHBOURHOOD RESULTS: JAN 18 5,000,000 4,0,000 4,000,000 3,0,000 3,000,000 2,0,000 2,000, ,817,416 3,970,000 AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN ,057,997 3,652, AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 UNIT SALES (BY MONTH) 4,4,237 3,565,000 Price Segment () New Listings Added Unit Sales ,687,443 3,270, ,000, % 2,000,001 2,2, % 2,2,001 2,0, % 2,0,001 2,7, % 2,7,001 3,000, % 3,000,001 3,2,000 1 % 3,2,001 3,0, % 3,0,001 3,7, % 3,7,001 4,000, % 4,000,001 4,0, % 4,0,001 5,000,000 2 % 5,000,001 6,000, % 6,000,001 7,000, % 7,000,001 8,000, % 8,000,000,000, %,000, % Totals % ,752,1 3,0, ,969,338 3,700, CHANGE January % February March Totals % MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Arbutus 4 3,931, Cambie 3 2,704, Dunbar 6 3,7, Kerrisdale 2 3,4, Kitsilano 2 2,399, MacKenzie Heights 1 3,696, Marpole 4 2,264, Mount Pleasant VW 0 2,545, Oakridge VW 0 3,3, Point Grey 5 3,856, Quilchena 3 4,056, S.W. Marine 2 3,288, Shaughnessy 3 6,234, South Cambie 0 3,793, South Granville 4 4,6, Southlands 0 3,541, University VW 3 6,1, Combined Total 42 3,548, n In January, 274 West Side detached house owners listed their property for sale, including 57 who listed at 7 million or more. Just 15 per cent of all new listings sold and only 5% of the most expensive houses found buyers during the month. Yet, despite the relatively low sales-tonew listings in January, the benchmark price of a Westside house was virtually unchanged (down 0.2%) from a month earlier at 3.54 million. In the popular neighbourhoods of Cambie, Dunbar, Shaughnessy Mount Pleasant and Oakridge, detached prices were slightly higher than in December. n While some see the January data as signally a market downturn, we see it as a natural, temporary reaction to disruptive external forces. It only makes sense that someone contemplating a 3 to million plus purchase would have paused to take stock this January. The month saw the introduction of unprecedented changes in federally regulated mortgages, the third interest increase in eight months, and the roll out of Vancouver s punitive empty home tax. The provincial government plans to introduce new regulations for home buying and selling in February, and no one, including, we suspect, the government knows exactly what those changes will be. n But the Westside detached housing fundamentals remain rock solid. It is the most aspiring destination in B.C. and land values reflect the inherent demand. New zoning regulations allow increased density - and income for Westside detached lots. Tens of thousands of new Canadians are arriving in the city every year. January Westside detached sales, at 42 houses, were nearly double the pace of a month earlier. Some are waiting for the dust to settle but this year will see increased listings and improved strength in Westside detached housing sales. PAGE 4

5 FEBRUARY - SINGLE FAMILY DETACHED HOMES THE REAL WESTSIDE RESULTS: FEB 18 THE REAL NEIGHBOURHOOD RESULTS: FEB 18 5,000,000 4,0,000 4,000,000 3,0,000 3,000,000 2,0,000 2,000, ,057,997 3,652, UNIT SALES (BY MONTH) 4,4,237 3,565,000 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB ,687,443 3,270, ,752,1 3,0, SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB CHANGE Janaury % February % March Total % Price Segment () New Listings Added Unit Sales 0 2,000, % 2,000,001 2,2, % 2,2,001 2,0, % 2,0,001 2,7, % 2,7,001 3,000, % 3,000,001 3,2, % 3,2,001 3,0, % 3,0,001 3,7, % 3,7,001 4,000, % 4,000,001 4,0, % 4,0,001 5,000, % 5,000,001 6,000, % 6,000,001 7,000, % 7,000,001 8,000, % 8,000,000,000, %,000, % Totals % ,843,1 3,6, ,925,928 3,2, MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Arbutus 2 3,805, Cambie 6 2,646, Dunbar 4 3,098, Fairview VW 0 2,898, Kerrisdale 1 3,4, Kitsilano 5 2,427, MacKenzie Heights 2 3,641, Marpole 3 2,285, Mount Pleasant VW 0 2,024, Oakridge VW 2 3,2, Point Grey 4 3,771, Quilchena 0 4,016, S.W. Marine 0 3,298, Shaughnessy 2 6,076, South Cambie 1 3,713, South Granville 3 4,5, Southlands 1 3,552, University VW 0 5,8, Vancouver West 36 3,418, n The Westside detached house market is the target of more government intrusion. Westside owners are carrying the weight of the new provincial super school tax on luxury homes. This annual tax is 0.2% on values from 3 million to 4 million and then 0.4% on values above 4 million. At the current benchmark Westside detached house price of 3.49 million, an owner would pay about 1,000 extra in school taxes every year. This is blatantly unfair, of course, to those who sacrificed for years to own a Westside detached house. But this is the reality we all must deal with. There is one narrow caveat to the new school tax: it does not apply to rental property of four or more units. Therefore, if an investor has a larger house converted to three rental units and also had a laneway house, they would be exempt from the school tax, even if the property quite likely exceeded 4 million in assessed value. It is strategy that some detached buyers and owners may consider. n Even before the new taxes kicked in, half of the detached houses purchased on the Westside in February were listed at 3.25 million or less. Houses newly listed at from 3 million to 3.5 million had a healthy sales-to-new-listing ratio of.5%. But, of the 123 houses listed from 4 million and higher, there were only 8 sales. The message to buyers is clear: sellers of higher-priced Westside houses are under pressure from the market and the government. With 247 new listings added in February alone, the Westside now represents an unprecedented advantage to aspiring buyers. Faith Wilson Group provides the industry exclusive Peace of Mind Guarantee for Buyers. It is a Guarantee that is even more important in these volatile, but promising times. PAGE 5

6 MARCH - SINGLE FAMILY DETACHED HOMES THE REAL WESTSIDE RESULTS: MAR 18 THE REAL NEIGHBOURHOOD RESULTS: MAR 18 5,000,000 4,7,000 4,2,000 4,000,000 3,2,000 3,000,000 2,7, ,4,237 3,565, ,687,443 3,270,000 OCT NOV DEC JAN FEB MAR OCT NOV DEC JAN FEB MAR UNIT SALES (BY MONTH) 3,752,1 3,0,000 Price Segment () New Listings Added Unit Sales ,843,2 3,6, ,000, % 2,000,001 2,2, % 2,2,001 2,0, % 2,0,001 2,7, % 2,7,001 3,000, % 3,000,001 3,2, % 3,2,001 3,0, % 3,0,001 3,7,000 2 % 3,7,001 4,000, % 4,000,001 4,0, % 4,0,001 5,000, % 5,000,001 6,000, % 6,000,001 7,000, % 7,000,001 8,000, % 8,000,000,000, %,000, % Totals % 63 3,722,284 3,052, ,5,619 2,965, CHANGE Janaury % February % March % Total % MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Arbutus 1 3,853, Cambie 3 2,616, Dunbar 7 2,967, Kerrisdale 4 3,299, Kitsilano 7 2,329, MacKenzie Heights 4 3,539, Marpole 1 2,316, Mount Pleasant VW 0 2,616, Oakridge VW 1 3,4, Point Grey 4 3,739, Quilchena 1 4,0, S.W. Marine 2 3,332, Shaughnessy 3 5,879, South Cambie 0 3,787, South Granville 3 4,194, Southlands 0 3,655, University VW 1 5,980, Combined Total 42 3,449, n March marked an historic point in Westside detached housing sales, but one many are perhaps hesitant to celebrate: detached sales in the month fell to the lowest level for March in 25 years. Sales were down 58% from March of 17 to just 42 houses. An unprecedented combination of negative measures from all three levels of government has had the intended affect of cooling the signature neighbourhood for Vancouver s remarkable four-year detached housing boom. n Some find it remarkable that Westside house prices remain resilient despite the dramatic sales decline. The March benchmark price for a Westside detached house was 3.4 million, the highest of any neighbourhood of its size in Canada and approximately seven times higher than the national benchmark. But look closely and you see that benchmark Westside detached prices were down 3% in March compared to three months earlier and are now at the same level as six months ago. n The reality is that we are seeing price corrections on Westside detached houses. In fact a number of houses are being listed at less than the assessed value set on July 1 of last year. Sellers are being pro-active. In March, there were 11 detached Westside listings for 2 million or less. This compares with 1 such listing three months ago. In at least four Westside neighbourhoods, March selling prices were down more than 5% from December 17. Of the 67 houses that came to the Westside market in March listed at 5 million or more, only two of them sold. For aspiring buyers who had hoped to see lower detached house prices on the Westside, this represents an opportunity. For Westside detached house sellers it is a time to make sure you are dealing with the best and most experienced real estate agency possible. PAGE 6

7 Q1 - SINGLE FAMILY DETACHED HOMES THE REAL WESTSIDE RESULTS: Q1 18 4,0,000 4,0,000 4,000,000 3,800,000 3,0,000 3,0,000 3,0, ,713,455 Unit Sales (by Quarter) SALES PRICE QUARTERLY TREND 3,968,398 4,234,422 3,690,000 Q1 Q2 Q3 Q4 Year-to-Date Totals 3,982,8 3,0,000 3,0,000 3,8,000 3,0,000 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 DAYS ON MARKET QUARTERLY TREND Price Segment () New Listings Added Unit Sales 3,722, ,000, % 2,000,001 2,2, % 2,2,001 2,0, % 2,0,001 2,7, % 2,7,001 3,000, % 3,000,001 3,2, % 3,2,001 3,0, % 3,0,001 3,7, % 3,7,001 4,000, % 4,000,001 4,0, % 4,0,001 5,000, % 5,000,001 6,000, % 6,000,001 7,000, % 7,000,001 8,000, % 8,000,000,000, %,000, % Totals % Q1 17 Q2 17 Q3 17 Q4 17 Q Change (%) -41.1% -41.1% THE REAL NEIGHBOURHOOD RESULTS: Q1 18 CHANGE(%) MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Arbutus 9 3,853, Cambie 12 2,616, Dunbar 2,967, Kerrisdale 9 3,299, Kitsilano 16 2,329, MacKenzie Heights 8 3,539, Marpole 13 2,316, Mount Pleasant VW 0 2,616, Oakridge VW 4 3,4, Point Grey 14 3,739, Quilchena 5 4,0, S.W. Marine 5 3,332, Shaughnessy 5,879, South Cambie 1 3,787, South Granville 12 4,194, Southlands 2 3,655, University VW 5 5,980, Combined Total 146 3,449, n O.K. everyone take a deep breath. We all need it after the first three months of 18 as Metro Vancouver housing sales fell to the lowest level in five years. It is not hard to understand why: each month came with a new government regulation or tax determined to slow Metro s housing sales. But look back five years to the first quarter of 13 when the media was reporting a crash and buyers were scarce. The Westside benchmark detached house price then was 2 million. This quarter the Westside benchmark house price is 3.4 million. Little wonder there is a deep-rooted belief that Vancouver homeownership remains a blue-chip investment. n Now it is time to reassess and look at a Westside house for what it really is: not a quick-profit commodity but a long-term investment in your family s comfort and financial security. And right now is a prime time for buyers to take advantage of the situation. In the last quarter of 17, there were 13 Westside detached houses for sale at 2.25 million or less. In the first quarter of 18 there are 41 such listings and half of these were priced at less than 2 million. That is a sea change in a matter of weeks that not everyone is aware of. n There is also a terrific inventory of detached houses now for sale on the Westside. In Q1, 752 new listings were added to the market, up 11% from a year earlier, but only 146 of them sold. Buyers are not dealing with on-the-threshold bidding wars or multiple offers this spring. It is taking an average of days for a Westside detached house to sell, allowing plenty of time for buyers to make sure they have found the exact house they want and negotiate the best possible financing. PAGE 7

8 JANUARY - TOWNHOUSES THE REAL WESTSIDE RESULTS: JAN 18 2,0,000 2,2,000 2,000,000 1,7,000 1,0,000 1,2,000 1,000, ,415,674 1,0,000 1,3,000 1,4,000 1,265,000 1,0,000 1,6,000 AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN ,492, AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 UNIT SALES (BY MONTH) 1,437,451 Price Segment () New Listings Added Unit Sales 17 1,418, , % 0,001 0, % 0,001 0, % 0, , % 700, , % 800, , % 900,001 1,000, % 1,000,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,7, % 1,7,001 2,000, % 2,000,001 3,000, % 3,000, % Totals 15 25% 17 1,590,891 1,6, CHANGE January % February March Totals % THE REAL NEIGHBOURHOOD RESULTS: JAN 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 0 1,148, Coal Harbour 0 1,846, Downtown VW 2 1,011, Fairview VW 0 1,080, False Creek 0 9, Kerrisdale 0 1,456, Kitsilano 1 1,082, Marpole 2 1,055, Mount Pleasant VW 2 1,257, Oakridge VW 0 1,4, Point Grey 0 1,087, Quilchena 0 1,467, Shaughnessy 0 2,266, South Cambie 0 1,790, South Granville 0 1,9, University VW 1 1,631, West End VW 1 1,1, Yaletown 6 1,768, Vancouver West 15 1,247, n As expected with the introduction of new mortgage regulations on January 1, sales of Westside townhouses were rather slow in January, at 15 units. This was down 58,3% from January of last yer and slightly below the sales pace in December 17. Listings increased, however, with new listings in the month, up from a month earlier. The resulting sales-tonew-listing ratio in January was 25%, a signal of a strong buyer s market, but the sales data also shows the price sensitivity of Westside townhouse buyers. For new listings priced at from 1.4 million to 1.5 million, the sales success ratio was 67% and it was 71% from townhouses listed at from 1.2 million to 1.3 million. Sales dropped to zero for the 11 listings priced at 2 million or more. n There is a lesson to townhouse sellers. This is because townhouses, even on the Westside, are often similar in design and size, so price plays an oversized role in a buyer s decision. For instance, half of the 6 townhouses listed at from 1.5 million to 1.75 million sold in January, but when the list price went over 1.75 million, the sales ratio dropped to 27%, with just 3 of the 11 listings selling in the month. Sellers, therefore, have to be absolutely certain that their listing price reflects the true market value. Even a difference of 5% can mean a property selling within days or sitting on the market for weeks. Faith Wilson Group is third-party recognized for achieving faster sales at higher prices than the industry average. We do this through industry-leading research and more than years experience in the Westside market cycles. We also provide the exclusive Peace of Mind Guarantee for Sellers, which is perhaps more important today than ever. PAGE 8

9 FEBRUARY - TOWNHOUSES THE REAL WESTSIDE RESULTS: FEB 18 2,0,000 2,2,000 2,000,000 1,7,000 1,0,000 1,2,000 1,000, ,590,891 1,492,997 1,437,451 1,472,031 1,418,165 1,337,433 1,3,000 1,6,000 1,265,000 1,4,000 1,0,000 1,125,000 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB.18 UNIT SALES (BY MONTH) Price Segment () New Listings Added Unit Sales , % 0,001 0, % 0,001 0, % 0, , % 700, , % 800, , % 900,001 1,000, % 1,000,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,7,000 3 % 1,7,001 2,000, % 2,000,001 3,000,000 4 % 3,000, % Totals 81 37% CHANGE Janaury % February % March Total % THE REAL NEIGHBOURHOOD RESULTS: FEB 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 1 1,158, Coal Harbour 0 1,857, Downtown VW 0 1,008, Fairview VW 8 1,066, False Creek 3 946, Kerrisdale 0 1,467, Kitsilano 6 1,088, Marpole 1 1,038, Mount Pleasant VW 3 1,247, Oakridge VW 0 1,519, Point Grey 0 1,0, Quilchena 0 1,474, Shaughnessy 0 2,278, South Cambie 1 1,747, South Granville 0 1,531, University VW 4 1,651, West End VW 2 1,224, Yaletown 0 1,776, Vancouver West 1,2, n Don t let the media s quick scan of the data fool you. Considering the low inventory of townhouse listings, the Westside townhouse market is very active and lively. If a new listing comes to the market at true market value it will likely sell very quickly and may attract multiple bids. Note, for instance, that % of the Westside townhouses listed at from 3 million to 4 million sold in February and that 67% of those priced from 1 million to 1.1 million also sold. The problem is a lack of inventory, not falling demand, despite all the government action to discourage buyers. Some popular neighbourhoods simply had no townhouses for sale in February. It is now taking up to two years for a new townhouse development to move through city planning and permits, so we will be facing tight inventory for some time to come. n In February, the typical new listing for a Westside townhouse sold within a median of just 8 days, the fastest pace since last October. For buyers, the best advice is to have a trusted real estate agent on speed dial, ready to react immediately when a listing that matches your parameters appears. Faith Wilson Group s team knows every Westside townhouse project and, due to our extensive experience and client data base, often hear first about new listings. For sellers, our best advice is make sure your listing price is accurate and that your property is in showroom condition. Benchmark townhouse prices are holding firm at 1.25 million, up marginally in February from a month earlier. Even with sales down from a year ago and the February sales-to-new-listing ratio at 37%, sellers of Westside townhouses have the advantage in a market characterized by a low selection of property and steady buyer demand. PAGE 9

10 MARCH - TOWNHOUSES THE REAL WESTSIDE RESULTS:: MAR 18 THE REAL NEIGHBOURHOOD RESULTS: MAR 18 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,000, ,437,451 1,265,000 Price Segment () New Listings Added Unit Sales 0 0, % 0,001 0, % 0,001 0, % 0, , % 700, , % 800, , % 900,001 1,000, % 1,000,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0,000 3 % 1,0,001 1,0, % 1,0,001 1,7, % 1,7,001 2,000, % 2,000,001 3,000, % 3,000, % Totals % 1,418,165 1,0,000 OCT NOV DEC JAN FEB MAR OCT NOV DEC JAN FEB MAR UNIT SALES (BY MONTH) 1,590,891 1,6,000 1,472,031 1,4,000 1,322,611 1,2,000 1,5,392 1,396, CHANGE Janaury % February % March % Total % MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 0 1,190, Coal Harbour 0 1,934, Downtown VW 2 1,026, Fairview VW 4 1,088, False Creek 1 908, Kerrisdale 2 1,526, Kitsilano 4 1,080, Marpole 2 1,113, Mount Pleasant VW 2 1,264, Oakridge VW 1 1,587, Point Grey 2 1,132, Quilchena 0 1,8, Shaughnessy 1 2,2, South Cambie 1 1,815, South Granville 0 1,617, University VW 1 1,718, West End VW 0 1,4, Yaletown 2 1,798, Combined Total 25 1,271, n The Westside townhouse sector had its own double-cross to bear in March. Sales declined a sharp 53.7% from a year earlier and, at 25 sales, were down % from February. Townhouse buyers were largely immune from the property transfer tax that affected detached sales, because the benchmark townhouse price in March was 1.2 million and only 1 Westside townhouse was listed at 3 million or more. What disrupted the townhouse sector was likely the mortgage stress test that now applies to all buyers, regardless of their downpayment. Many savvy buyers had pre-qualified for mortgages in November and December in anticipation of the stress test, which requires buyers to qualify at higher mortgage rates. But the pre-qualification period is normally for 1 days so most expired in March. From now on, the stress test will be in force and will continue to sideline or delay some purchasers. n March had a fairly healthy inventory of townhouses available. There were 76 new listings, the highest level in six months. With 25 sales, however, the sales-to-new-listing ratio was very calm 33%. It now take a median of 35 days for a Westside townhouse to sell, which gives buyers what has been a rare opportunity to carefully shop and compare properties. n The benchmark townhouse price on the Westside is now 1.27 million, up 1.6% from February and 2.3% higher than in March of 17. The price picture is somewhat hazy, however, because of the low number of sales in some neighbourhoods. Marpole, for instance, posted a market-leading 7.2% increase in its benchmark price from a month earlier, to 1.11 million, while Kitsilano posted a 0.7% decline to 1.08 million. But there were only 5 townhouse sales in both neighbourhoods combined. Generally, Westside townhouse prices have stabilized and will likely remain so for some time. PAGE

11 Q1 - TOWNHOUSES THE REAL WESTSIDE RESULTS: Q1 18 THE REAL NEIGHBOURHOOD RESULTS: Q1 18 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,000, , ,375,439 1,0,000 Unit Sales (by Quarter) SALES PRICE QUARTERLY TREND 1,365,058 1,4,944 1,475,396 1,282,000 Q1 Q2 Q3 Q4 Year-to-Date Totals 1,469,458 1,277,0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 DAYS ON MARKET QUARTERLY TREND Price Segment () New Listings Added Unit Sales 79 Change (%) -33.1% -33.1% Sales-To-New 0 0, ,001 0, ,001 0, % 0, , % 700, , % 800, , % 900,001 1,000, % 1,000,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,0, % 1,0,001 1,7, % 1,7,001 2,000, % 2,000,001 3,000, % 3,000, % Totals % ,422,9 1,0,000 Q1 17 Q2 17 Q3 17 Q4 17 Q MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Cambie 1 1,190, Coal Harbour 3 1,934, Downtown VW 5 1,026, Fairview VW 13 1,088, False Creek 4 908, Kerrisdale 2 1,526, Kitsilano 12 1,080, Marpole 5 1,113, Mount Pleasant VW 7 1,264, Oakridge VW 1 1,587, Point Grey 2 1,132, Quilchena 0 1,8, Shaughnessy 1 2,2, South Cambie 2 1,815, South Granville 0 1,617, University VW 8 1,718, West End VW 3 1,4, Yaletown 1,798, Combined Total 79 1,271, n Sales of Westside townhouses dropped 33% in Q1 compared to the same period last year, but there are clear signs that townhouse sales will recover quickly. First, the typical new listing sold within a median of just 9 days in Q1. Second, the benchmark price advanced 2.3% from a month earlier and was up 11.2% (that is more than 125,000) from the end of 17. We are still seeing multiple offers on premium townhouse properties. Third is that Q1 townhouse sales were seen in 17 of the 18 Westside neighbourhoods that we monitor. Also, there was strong buyer activity through a wide price spectrum. n The Westside townhouse benchmark price in Q1 was 1.27 million but the price range was fairly broad. The lowest townhouse price was in False Creek, where 4 buyers paid a benchmark of 908,0; the highest was the 2.3 million a buyer paid for a Shaughnessy townhouse; another buyers paid a benchmark of 1.7 million for a Yaletown townhouse. The most popular neighbourhoods for buyers were Fairview, with 13 sales, and Kitsilano, with 12 sales. Prices in both of these neighbourhoods were nearly identical at 1.08 million. Such a consistent action in various price points reveals the depth of the buyer demand for Westside townhouses. n After a relative lull in 17, starts of Vancouver townhouses and condos nearly doubled during the Q1. In all, 1,592 multi-family units started in the past three months, compared to 744 in the same period last year. An estimated 285 of these are new Vancouver townhouses. And many more are coming. In Phase 3 of the Cambie corridor development, plans are for 14,000 new homes and the zoning emphasis is on townhouses. New townhouse prices will be higher, likely much higher, than what is available in the resale market. PAGE 11

12 JANUARY - APARTMENTS /CONDOS THE REAL WESTSIDE RESULTS: JAN 18 1,1,000 1,000,000 9, ,000 8, ,000 7, , ,0 973, , ,0 789,0 978, ,000 Price Segment () New Listings Added Unit Sales 947,066 7,000 1,166, ,800 AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 UNIT SALES (BY MONTH) CHANGE January % February March Totals % 0 3, % 3,001 0, % 0,000 4, % 4,001 0, % 0,001 5, % 5,001 0, % 0,001 6, % 6, , % 700,001 7, % 7, , % 800, , % 900,001 1,000, % 1,000,001 1,2, % 1,2,001 1,0, % 1,0,000 2,000, % 2,000, % Totals % THE REAL NEIGHBOURHOOD RESULTS: JAN 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 699, Coal Harbour 1,053, Downtown VW 44 7, Dunbar 2 708, Fairview VW , False Creek 842, Kerrisdale 1 912, Kitsilano 14 6, Marpole 599, Mount Pleasant VW 1 565, Oakridge VW 3 1,5, Point Grey 2 6, Quilchena 3 1,128, S.W. Marine 1 491, Shaughnessy 0 659, South Cambie 0 934, South Granville 2 1,018, Southlands 0 8, University VW , West End VW 646, Yaletown , Combined Total 2 812, n Don t let the January sales data about the Westside condominium market fool you. True, condominium apartment sales were down 39.9% from January of last year and the sales-to-new listing ratio was a modest 47%, with 2 of the 470 new listing selling. But when one looks closely, the Westside condominium market in January proved a robust start to what we believe could be a record-setting year for price and sales performance. Remember that January marked the start of the most restrictive federal mortgage regulations ever introduced. Then there was an increase in mortgage rates, and the punitive Vancouver empty home tax came into effect. Facing these headwinds, the fact that 2 buyers paid a benchmark price of more than 800,000 for a Westside condo is remarkable. n Also, look closely at the sales success ration For many sellers, the sales ratio was well above %, which is considered a seller s market: 84% of the 25 condo apartments listed at from 7,000 to 800,000 sold; 64% of those listed at from 1.2 million to 1.5 million sold and 64% of the 71 condos listed for less than 6,000 also sold. Even at the very highest prices, in excess of 1.5 million, 31 Westside condo apartments were purchased in January. Overall, the typical new listing was on the market for a median of just 7 days before it sold and the benchmark condo price increased marginally from December to 812,0. This is all characteristic of a very strong buyer s market. PAGE 12

13 FEBRUARY - APARTMENTS /CONDOS THE REAL WESTSIDE RESULTS: FEB 18 1,1,000 1,000,000 9, ,000 8, ,000 7, , , ,0 789,0 978, , ,066 7,000 Price Segment () New Listings Added Unit Sales 1,149,9 898,000 1,087,4 862,000 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB.18 UNIT SALES (BY MONTH) CHANGE Janaury % February % March Total % 0 3, % 3,001 0, #DIV/0! 0,000 4, % 4,001 0, % 0,001 5, % 5,001 0, % 0,001 6, % 6, , % 700,001 7, % 7, , % 800, , % 900,001 1,000, % 1,000,001 1,2, % 1,2,001 1,0, % 1,0,000 2,000, % 2,000, % Totals % THE REAL NEIGHBOURHOOD RESULTS: FEB 18 CHANGE(%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 8 703, Coal Harbour 8 1,038, Downtown VW , Dunbar 0 741, Fairview VW , False Creek , Kerrisdale 4 957, Kitsilano , Marpole 4 596, Mount Pleasant VW 2 577, Oakridge VW 2 1,4, Point Grey 3 636, Quilchena 2 1,195, S.W. Marine 1 5, Shaughnessy 0 699, South Cambie 0 945, South Granville 2 1,005, Southlands 0 8, University VW 914, West End VW , Yaletown , Vancouver West , n be after more than years in the Vancouver real estate industry, I have become something of a fuddy-duddy, but I admit I am amazed at the performance of the Westside condominium apartment market. Condos have become the first choice for a majority of home buyers. In February, 534 condo apartments sold on the Westside. This is 14 times higher than detached house sales and 11 times higher the townhouse sales. As well, the benchmark price for a condo apartment increased nearly 3% in February from a month earlier, to 835,0. In some neighbourhoods, such as the West End, Fairview and False Creek, prices were up from 4% to more than 5% from January. n The typical new listing for a Westside condo apartment sold in a median of just 8 days in February, an extremely fast pace that has remained constant for two months. And there is action through a wide price range, of from under 0,000, with 37 sales in February, to more than 1.5 million, with 35 sales in February. The mortgage stress test was forecast to slow sales after January 1, but many buyers have pre-approved mortgages written in December and are, so far, not affected. n Judging from the intense demand for condominium apartments, combined with new government measures that may stunt sales of other forms of housing, we expect Westside condo sales to remain strong. If you are seller, this is good time to list. If you are a buyer, prepare to be competitive. PAGE 13

14 MARCH - APARTMENTS /CONDOS THE REAL WESTSIDE RESULTS: MAR 18 1,0,000 1,0,000 1,0,000 1,000, , , , ,0 789, , , ,066 7,000 1,146, ,000 Price Segment () New Listings Added Unit Sales 1,090, ,000 1,018, ,000 OCT NOV DEC JAN FEB MAR 11 OCT NOV DEC JAN FEB MAR UNIT SALES (BY MONTH) , % 3,001 0, % 0,000 4, % 4,001 0, % 0,001 5, % 5,001 0, % 0,001 6, % 6, , % 700,001 7, % 7, , % 800, , % 900,001 1,000, % 1,000,001 1,2, % 1,2,001 1,0, % 1,0,000 2,000, % 2,000, % Totals % CHANGE Janaury % February % March % Total 1, % 8 THE REAL NEIGHBOURHOOD RESULTS: MAR 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 8 7, Coal Harbour 1,078, Downtown VW , Dunbar 1 731, Fairview VW , False Creek , Kerrisdale 7 949, Kitsilano , Marpole 4 611, Mount Pleasant VW 3 599, Oakridge VW 4 1,131, Point Grey 1 636, Quilchena 2 1,178, S.W. Marine 3 511, Shaughnessy 0 716, South Cambie 0 973, South Granville 2 1,035, Southlands 1 866, University VW , West End VW , Yaletown , Combined Total , n Even the ultra active Westside condominium apartment market slowed its pace in March, though it remained quite busy. Sales were down nearly 25% from a year earlier, but the typical new listing sold within a median of 8 days and, based on the 331 sales, an average of more than condos sold every day, seven days a week, during March. n Condominium apartment prices varied widely in March, arcing from a low of 511,0 in the S.W Marine area to 1.17 million in Quilchena. Overall, the Westside benchmark condo apartment price is now 844,700, up 1% from February and 4.6% higher than three months earlier. Despite the slower sales, we are still seeing multiple offers on prime listings, indicating robust demand continues. n March condo buyers were apparently not deterred by prices and seemed more focused on popular neighbourhoods. Yaltetown posted 48 sales at a benchmark price of 936,0; while the West End had 37 sales at 714,0 and buyers purchased a condo in exclusive Coal Harbour at a benchmark price above 1 million. The most active neighbourhood was the Downtown, with 67 condo sales at a benchmark of 737,0. There is a large and growing selection of condos on the Westside market, with 5 new listings in March, the highest level in six months, and a rush of new product now starting to pre-sell. Buyers would be wise to work with an experienced Westside real estate agent who can guide them through the inventory to that perfect condo apartment. PAGE 14

15 Q1 - APARTMENTS /CONDOS THE REAL WESTSIDE RESULTS: Q1 18 1,0,000 1,0,000 1,000, , , ,000 0, , ,000 SALES PRICE QUARTERLY TREND 980, , , , , ,0 1,080,6 849,0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 DAYS ON MARKET QUARTERLY TREND 24 Unit Sales (by Quarter) 19 8 Price Segment () New Listings Added Unit Sales 0 3, % 3,001 0, % 0,000 4, % 4,001 0, % 0,001 5, % 5,001 0, % 0,001 6, % 6, , % 700,001 7, % 7, , % 800, , % 900,001 1,000, % 1,000,001 1,2, % 1,2,001 1,0, % 1,0,000 2,000, % 2,000, % Totals 1, % Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 Q2 Q3 Q4 Year-to-Date Totals Change (%) -16.8% -16.8% THE REAL NEIGHBOURHOOD RESULTS: Q1 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Cambie 28 7, Coal Harbour 42 1,078, Downtown VW , Dunbar 3 731, Fairview VW , False Creek , Kerrisdale , Kitsilano , Marpole , Mount Pleasant VW 6 599, Oakridge VW 11 1,131, Point Grey 7 636, Quilchena 7 1,178, S.W. Marine 7 511, Shaughnessy 0 716, South Cambie 1 973, South Granville 7 1,035, Southlands 1 866, University VW , West End VW 0 714, Yaletown , Combined Total , n More than 900 condominium apartments have sold on the Westside since New Years Day, a performance that bodes well for the rest of the year. If condos can sell every day during the headwinds the market faced in Q1, the rest of the spring should be clear sailing. While there was buyer activity in nearly every Westside neighbourhood it was the downtown areas that shone in Q1. There were nearly 0 sales in the Downtown core, another 132 in Yaletown and 0 in the West End, where the benchmark price increased 5% from Q4 17 to 714,0. n Across the Westside, the benchmark condo apartment price in Q1 was 844,700, which was 4.6% higher than three months earlier and.5% higher than in Q1 17. Some neighbourhoods saw even higher price spikes: Kerrisdale was up 9.3% from Q4 17, to 949,900; and Dunbar, Point Grey and Southlands all saw increases of from 7.7% to 9.8% in the same period. Multiple offers are not uncommon. n In Q1, starts of multi-family units the majority of them condos in Vancouver reached 1,592 units, double the level at the same time in 17. But, based on what developers have been paying for residential land in the past year, you can expect new condo prices to average 1,0 per square foot, even higher in many cases. One new downtown condo tower on Alberni Street is pre-selling at 2,0 per square foot. As a comparison, the average Westside resale condo price is around 1,0 per square foot. PAGE 15

16 So you have decided to buy your next dream home? To find the best home for your needs at the price you deserve what you need is a Realtor who: HAS THE PLAN that will find and secure the home that best meets your needs backed by their specialized market knowledge, their bank of prospective sellers, their leading edge search technology and their experience at writing offers to promote & protect you! HAS THE TEAM that will focus on listening to and helping you define your needs & wants in context of TODAY s market; that has the expertise and successful experience to structure offers that promote & protect YOU! IS COMMITTED to you being totally informed such that you will make your buying decision with complete peace of mind! Witness our unique neighbourhood profiles at FaithWilsonGroup.com. DELIVERS a proven track record of negotiation expertise and successful transactions, in a wide spectrum of property types across the Lower Mainland, along with a benchmark level of overall client satisfaction. AND BOTTOM LINE BUYERS, YOUR SATISFACTION IS GUARANTEED NOT HAPPY with your new home within the first 18 months? Then, we will relist it, resell it and not charge you our commission! *Some conditions apply TO GET STARTED... First, visit FaithWilsonGroup.com for extensive details about: Vancouver area neighbourhoods from dog parks to home pricing by property type; our 3 degree Performance Promise; our exclusive monthly Market Update research publications; our awards & achievements and much, much more. Then, call me at or , or me at info@faithwilsongroup.com