EASTSIDE1 TOWNHOME DETACHED CONDOS $1,462, % INCREASE. Faith Wilson Group Presents VANCOUVER S MONTHLY RESIDENTIAL REAL ESTATE ANALYSIS

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1 EASTSIDE1 Faith Wilson Group Presents VANCOUVER S MONTHLY RESIDENTIAL REAL ESTATE ANALYSIS JAN, FEB, MAR & Q1 18 TOWNHOME UNIT SALES Q1 18: 196 Q4 17: 256 Q1 17: 325 DETACHED MOUNT PLEASANT HPI Benchmark price: 1,462, % INCREASE vs. Q1 17 INVENTORY going into Q2 6 vs. Q % DECREASE INVENTORY going into Q2 125 vs. Q % INCREASE UNIT SALES Q1 18: 71 Q4 17: 75 Q1 17: 62 INVENTORY going into Q2 534 vs. Q % INCREASE CHAMPLAIN HEIGHTS UNIT SALES COLLINGWOOD HPI Benchmark price: 768, 5, % INCREASE vs. Q1 17 CONDOS Q1 18: 364 Q4 17: 412 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.2% for the first million dollars in assessed value. The tax increases to.4% for every million dollars above that. For example, a home worth 4 million would be subject to an additional 2, per year under the school tax. A home assessed at 5 million would pay an additional 2, on the first million dollars, plus 4, on the second million dollars for a total increased property tax of 6,, 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.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, FAITH WILSON 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.16% of B.C. mortgage holders are currently in arrears, meaning they have missed three or more mortgage payments. This means just 1,8 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.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 OCTOBER JANUARY - SINGLE FAMILY DETACHED HOMES THE REAL EASTSIDE RESULTS: JAN 18 1,9, 1,8, 1,7, 1,, 1,, 1,, 1,, 1,, 7 1,647,776 1,57, AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN ,656,8 1,615, 1,642,114 1,58, 24 1,597,615 1,517, AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN CHANGE January % February March Totals % Price Segment () New Listings Added Unit Sales Listings Ratio 8, % 8,1 9, % 9,1 1,, 1 1 % 1,,1 1,, 3 % 1,,1 1,, 2 3 1% 1,,1 1,, % 1,,1 1,, % 1,,1 1,, % 1,,1 1,, 17 59% 1,,1 1,7, % 1,7,1 1,8, 2 % 1,8,1 1,9, % 1,9,1 2,, % 2,,1 2,2, % 2,2,1 2,, % 2,, % Totals % 31 1,74,544 1,, 39 1,698,8 1,598, THE REAL NEIGHBOURHOOD RESULTS: JAN 18 CHANGE(%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Collingwood VE 5 1,339, Fraser VE 6 1,6, Fraserview VE 1,927, Grandview VE 5 1,663, Hastings 1,383, Hastings East 5 1,493, Killarney VE 3 1,2, Knight 2 1,532, Main 3 1,888, Mount Pleasant VE 1 1,448, Renfrew Heights 2 1,491, Renfrew VE 2 1,4, South Vancouver 2 1,521, Victoria VE 1 1,9, Eastside Combined 37 1,564, n Eastside detached housing sales fell to 37 units in January, down % from January 17, and even lower than in December, when 61 houses sold. Folks, this is an abnormal market and we don t believe it will continue. Part of the reason for the low detached sales in January, we believe, is traced to the uncertainty that many buyers experienced due to another hike in lending rates, the introduction of tougher mortgage qualification regulations, Vancouver s empty home tax and angst about new housing measures expected with February s provincial budget. We respect that, but the fact remains that many buyers are overlooking a great opportunity right now. n Eastside detached house buyers, first of all, have a wide selection to choose from. In January, 182 new listings came to the market and only one in five of them sold. Second, price increases have virtually stalled. The benchmark detached house price in January was 1.56 million, unchanged from three months ago. In of 15 Eastside neighbourhoods we monitor, detached prices are lower than they were back in November. Buyers also don t have to scramble to decide: it now takes an average of 45 days for an Eastside detached listing to sell, the most leisurely pace in two years. n Finally, detached house buyers have an unprecedented opportunity to share in the explosive multi-family market, because Vancouver zoning allows from two to four housing units to be developed on nearly any single-family lot on the Eastside, especially in RT-zoned neighbourhoods such as Grandview and Mount Pleasant. I am no mystic, but I believe that many people will look back to the start of 18 and say I sure wish I had bought an Eastside house then. For detached house buyers who are hesitant to act, Faith Wilson Group offers the exclusive Peace of Mind Guarantee for Buyers so you can purchase with calm confidence, regardless of market conditions or concerns. PAGE 4

5 FEBRUARY OCTOBER - SINGLE FAMILY DETACHED HOMES THE REAL EASTSIDE RESULTS: FEB 18 1,8, 1,7, 1,, 1,, 1,, 1,, 1,, 7 1,656,8 1,615, SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB.18 1,642,114 1,58, 24 1,597,615 1,517, 31 1,74,544 1,, SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB CHANGE anaury % February % March Total % Price Segment () New Listings Added Unit Sales Listings Ratio 8, % 8,1 9, 1 % 9,1 1,, 5 % 1,,1 1,, 5 5 % 1,,1 1,, 2 % 1,,1 1,, 5 3 % 1,,1 1,, % 1,,1 1,, % 1,,1 1,, % 1,,1 1,7, % 1,7,1 1,8, 23 43% 1,8,1 1,9, % 1,9,1 2,, 1 % 2,,1 2,2, % 2,2,1 2,, % 2,, % Totals % 39 1,743,93 1,597, ,658,136 1,4, 35 THE REAL NEIGHBOURHOOD RESULTS: FEB 18 CHANGE(%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Collingwood VE 2 1,372, Fraser VE 4 1,6, Fraserview VE 4 1,919, Grandview VE 7 1,686, Hastings 1 1,356, Hastings East 1 1,496, Killarney VE 4 1,58, Knight 3 1,542, Main 2 1,846, Mount Pleasant VE 5 1,431, Renfrew Heights 7 1,,.58.3 Renfrew VE 6 1,416, South Vancouver 3 1,7, Victoria VE 1 1,5, Vancouver East 1,5, n Since the first of this year 392 new listings for Eastside detached houses have been added to the market, but just 122 have sold, including in February when 217 new listings were reported. Yes, that is detached sales, the lowest monthly level in years. This equates to a sales-to-newlisting ratio of 23%, also close to historic lows. Detached house sales will likely pick up as we move into the spring, but right now the Eastside is clearly and strongly a buyer s market. n There had been some buyer hesitation this year as people waited to hear what latest intrusions into the market would be made by the B.C. budget, which came down Feb.. It turns out it should have little effect on the Eastside. The government increased taxation on home sales priced above 3 million, but the benchmark detached house on the Eastside is about half that, at 1.56 million in February, unchanged from three months earlier. n Eastside detached buyers should be taking advantage of what could be brief window of opportunity. Price increases have stabilized and even stalled and there is a great selection of houses on the market. Also, city zoning is encouraging both rental and strata development on single-family detached lots, particularly in RT zoned areas, such as Grandview, which incidentally posted the highest sales and the highest price increase of any Eastside neighbourhood in February, with prices up 1.3% from a month earlier to 1.68 million. It is the inherent demand for scarce land that will dictate future Eastside home values, and this makes detached housing, right now, perhaps the best longterm investment in the city. More than Eastside houses were listed in February below the benchmark price and 11 were offered at 1.1 million or less. Ask your trusted real estate agent to tour you through the Eastside detached housing market and be prepared to be surprised at what is available today. PAGE 5

6 MARCH - SINGLE FAMILY DETACHED HOMES THE REAL EASTSIDE RESULTS: MAR 18 1,9, 1,8, 1,7, 1,, 1,, 1,, 1,, 7 1,642,114 1,58, 24 1,597,615 1,517, OCT NOV DEC JAN FEB MAR OCT NOV DEC JAN FEB MAR 1,74,544 1,, Price Segment () New Listings Added Unit Sales 39 1,743,93 1,597,444 8, 8,1 9, 1 % 9,1 1,, 1 % 1,,1 1,, 1 1,,1 1,, 2 1 % 1,,1 1,, % 1,,1 1,, % 1,,1 1,, % 1,,1 1,, % 1,,1 1,7, % 1,7,1 1,8, % 1,8,1 1,9, % 1,9,1 2,, % 2,,1 2,2, % 2,2,1 2,, 15 3 % 2,, % Totals % 48 1,656,969 1,4, 44 1,664,96 1,617, CHANGE Janaury % February % March % Total % Listings Ratio THE REAL NEIGHBOURHOOD RESULTS: MAR 18 CHANGE (%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Collingwood VE 5 1,357, Fraser VE 5 1,572, Fraserview VE 6 1,922, Grandview VE 5 1,714, Hastings 4 1,391, Hastings East 1 1,489, Killarney VE 9 1,563, Knight 3 1,2, Main 5 1,817, Mount Pleasant VE 6 1,462, Renfrew Heights 3 1,512, Renfrew VE 6 1,415, South Vancouver 9 1,519, Victoria VE 3 1,489, Eastside Combined 7 1,553, n There is often a psychological dimension to real estate cycles that appears counterintuitive. It goes like this: when prices are soaring and there is a lack of inventory, everyone is trying to buy. When prices stabilize and there is a large amount of supply, less people are buying. We are in the latter phase right now, one I have seen before during more than years in the Metro Vancouver residential market. I recall the first few months of 13, the last time that Eastside detached sales were as low as they are this year. The counterintuitive buyers that purchased then experienced the largest appreciation lift in history as the typical East Vancouver detached house value has increased 86.8%. n I am not saying everyone should rush out and buy right now, but the current market certainly offers a compelling opportunity. There are now 233 detached listings to choose from in East Vancouver, compared to a total of 81 three months ago, before the new mortgage stress test and the provincial home tax increases came into effect. At the end of 17 there were only 7 East Vancouver new listings for detached houses at 1.3 million or less. This March 21 houses were listed at 1.3 million or less. Overall Eastside detached house benchmark prices have not budged in three months. n Detached house sales were down 52.1% in March compared to a year earlier, which will amplify speculation of a housing downturn. This works to the advantage of buyers. Now is the time for those who have aspired to own a Vancouver house to take advantage. This is when buyers can carefully shop Eastside detached house listings, prepare their financing and work with an experienced realty agent who is skilled in price negotiation. Faith Wilson Group provides the exclusive Peace of Mind Guarantee for Buyers, an assurance that a buyer can act with calm confidence regardless of the real estate cyc PAGE 6

7 Q1 - SINGLE FAMILY DETACHED HOMES THE REAL EASTSIDE RESULTS: Q1 18 1,8, 1,7, 1,, 1,, 1,, 1,, 1,, 1,566,668 1,5, SALES PRICE QUARTERLY TREND 1,691,141 1,8, 1,633,9 1,577, 1,642,389 1,565, Price Segment () New Listings Added Unit Sales 1,684,4 1,, Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 DAYS ON MARKET QUARTERLY TREND , 8,1 9, 2 % 9,1 1,, % 1,,1 1,, % 1,,1 1,, 5 4 8% 1,,1 1,, % 1,,1 1,, 25 63% 1,,1 1,, 16 32% 1,,1 1,, % 1,,1 1,7, % 1,7,1 1,8, 7 29% 1,8,1 1,9, % 1,9,1 2,, % 2,,1 2,2, % 2,2,1 2,, 9 15% 2,, % Totals % Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Unit Sales (by Quarter) Q1 Q2 Q3 Q4 Year-to-Date Totals Change (%) -39.7% -39.7% Listings Ratio THE REAL NEIGHBOURHOOD RESULTS: Q1 18 CHANGE (%) MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Collingwood VE 14 1,357, Fraser VE 19 1,572, Fraserview VE 12 1,922, Grandview VE 18 1,714, Hastings 5 1,391, Hastings East 9 1,489, Killarney VE 18 1,563, Knight 1,2, Main 13 1,817, Mount Pleasant VE 15 1,462, Renfrew Heights 17 1,512, Renfrew VE 21 1,415, South Vancouver 16 1,519, Victoria VE 8 1,489, Combined Total 196 1,553, n It all comes down to the price of land, which explains why Eastside detached house values are holding steady in the current headwinds. A lot of people are interested in land in East Vancouver. From Renfrew Street to Cambie along East Broadway and East 12th Avenue, there are at least half-a-dozen land assemblies underway as detached house lots are bundled into higher-density development sites. Last month a 14,7 square foot lot on East 14th Avenue sold for 9.8 million, or 666 for each square foot or, to put another way, 28 million per acre. A,8 square foot site on East 7 Avenue in Grandview sold in February for 6.65 million, equal to 26 million an acre. It is the inherent value of land that is the foundation for detached house prices in such a young and rapidly growing city as Vancouver. n Eastside detached house sellers can take heart that they are sitting on some of the most valuable land in Canada with little fear of any change in that ranking. Yet buyers should also recognize that they have an advantage in the Eastside market right now. Prices are stabilizing, dropping.4% from Q4 17, as detached sales plunged nearly % in Q1 compared to the same quarter last year. Meanwhile, the number of listings has climbed sharply. In Q1, 6 new listings were added including nearly two-dozen listed at less than 1.2 million and since only 196 sold, many of these are still available. It now takes an average of 41 days for an Eastside detached house to sell. Anyone who has aspired to own a Vancouver detached house should work with an experienced agent this spring and begin carefully exploring what could be an historical opportunity for the investment of a lifetime. PAGE 7

8 OCTOBER JANUARY - TOWNHOUSES THE REAL EASTSIDE RESULTS: JAN 18 THE REAL NEIGHBOURHOOD RESULTS: JAN 18 1,, 1,, 9, 9, 8, 8, 7, 91,99 852, AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN , , 24 1,39,843 1,45, , ,95 AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN CHANGE January % February March Totals % Price Segment () New Listings Added Unit Sales Listings Ratio, %,1 3, % 3,1, %,1 4, % 4,1, 2 %,1 5, 1 % 5,1, %,1 6, % 6,1 7, 2 4 % 7,1 7, 4 2 % 7,1 8, 1 % 8,1 8, % 8,1 9, 1 % 9,1 1,, 2 % 1,,1 1,2, % 1,2, % Totals % , , ,695 8, CHANGE(%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Champlain Heights 4 711, Collingwood VE 765, Fraser VE 98, Fraserview VE 843, Grandview VE 916, Hastings 1 789, Killarney VE 3 6, Knight 2 935, Main 2 988, Mount Pleasant VE 4 1,172, Renfrew VE 844, Victoria VE 1 985, Eastside Combined , n Resale townhouses may represent the best strata buy on the Eastside, despite the relatively high benchmark prices of 857, in January. The reason is that new townhouses coming will be priced much higher because land, labour and general construction costs are rising so rapidly. It is not uncommon for Eastside townhouse development sites to sell for 9 per square foot. Developers say construction costs have accelerated % in the past five years. Which means that any new townhouses will list for 1, per square foot or more this year. But resale townhouses on the Eastside can easily be found for less than 825 per square foot, even two-bedroom units. n Half of the 41 Eastside townhouses listed for sale in January were priced under 1 million, including 11 listed at 7, or less. The most popular price for buyers was the range from 1 million to 1.25 million, with 6 sales representing 38% of the new listings in that price range. The least expensive neighbourhood for townhouse buyers in January was Killarney, where 3 buyers paid a benchmark price of 6,, a price that was down 3.1% from a month earlier. The most expensive neighbourhood was Mount Pleasant, where 4 buyers paid a benchmark of 1.17 million, a price down.5% from December and unchanged from three months earlier. What all this shows is that, despite a fairly low 42 new listings in January, there is a good selection in the resale townhouse market. n Eastside townhouse prices are not in the runaway lane any longer and buyers can take their time making a decision. The benchmark price has barely budged (up.2%) in three months and it now takes a median of 38 days for a new listing to sell. Our advice to buyers: take advantage of the current lull to shop carefully and perhaps achieve a deal of a lifetime on an Eastside townhouse right now.level for multi-family homes is at a record level with 35, units now being built, but townhouses account for only 13% of these and the vast majority are pre-sold before they complete. PAGE 8

9 FEBRUARY OCTOBER - TOWNHOUSES THE REAL EASTSIDE RESULTS: FEB 18 THE REAL NEIGHBOURHOOD RESULTS: FEB 18 1,, 1,, 1,, 1,, 9, 8, 7, 856, , 1,39,843 1,45, SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB.18 9, ,95 877, , 933,6 8, Price Segment () New Listings Added Unit Sales 1,1,567 1,138, Janaury % February % March Total % Listings Ratio, %,1 3, % 3,1, %,1 4, % 4,1, 1 %,1 5, % 5,1, %,1 6, % 6,1 7, % 7,1 7, % 7,1 8, % 8,1 8, 1 % 8,1 9, 5 2 % 9,1 1,, 2 1 % 1,,1 1,2, 14 7% 1,2,1 + 2 % Totals % CHANGE CHANGE(%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Champlain Heights 1 728, Collingwood VE 1 775, Fraser VE 1 977, Fraserview VE 868, Grandview VE 1 937, Hastings 2 788, Killarney VE 631, Knight 4 9, Main 3 974, Mount Pleasant VE 6 1,176, Renfrew VE 8, Victoria VE 2 1,, Vancouver East , n The benchmark price of an Eastside townhouse in February was 868,9, but for most of the 21 buyers in the month it was much closer to 1 million. Six buyers purchased in Mount Pleasant, which led the Eastside in sales at a benchmark of 1.17 million; and the six in total who purchased in the Fraser, Main and Victoria neighbourhoods paid between 974, to just over one million dollars for a townhouse. Of the 46 townhouse listings in February, were listed at 1 million or more and 16 of these sold. n February Eastside townhouse prices were up 1.3% from January and 16.1% higher than a year earlier. The appreciation is a factor of supply, which is unlikely to change anytime soon. An industry report this month stated there were only 2 new townhouses completed and unsold in all of Vancouver, both priced in excess if 1 million. As it takes about two years for a new townhouse project to move from concept to completion, we will apparently be dealing with a scant townhouse supply for most of the year. n The sales-to-new-listing ratio for Eastside townhouses in February was 46%, which would normally indicate a buyer s market, but that is not really the case. At the most popular listing price above 9,, the sales success ratio was from % to 7%, an indication that buyers are driven more by a perception of value than by price. There were 5 townhouses listed on the Eastside for 6, or less in February, but only one of them sold. Despite the mortgage stress test in January and a lack of inventory, demand for Eastside townhouses is quite strong. If you are a townhouse owner considering a sale, we suggest that listing in early spring would lead to a quick and satisfying sale. The typical new listing in February was on the market for a median of only 11 days before it sold, the fastest pace in five months. PAGE 9

10 MARCH - TOWNHOUSES THE REAL EASTSIDE RESULTS: MAR 18 THE REAL NEIGHBOURHOOD RESULTS: MAR 18 1,, 1,, 1,, 1,, 9, 8, 7, 1,39,843 1,45, 9, ,95 OCT NOV DEC JAN FEB MAR OCT NOV DEC JAN FEB MAR 877, , 933,6 8, Price Segment () New Listings Added Unit Sales 1,69,958 1,, 1,22,182 1,62, Listings Ratio,,1 3, 3,1,,1 4, 4,1,,1 5, 5,1, 1 %,1 6, 1 6,1 7, 2 1 % 7,1 7, 2 2 % 7,1 8, 1 1 % 8,1 8, 2 % 8,1 9, 4 2 % 9,1 1,, % 1,,1 1,2, 16 8 % 1,2, % Totals % CHANGE Janaury % February % March % Total % CHANGE (%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Champlain Heights 4 768, Collingwood VE 828, Fraser VE 3 1,39, Fraserview VE 1 96, Grandview VE 4 1,7, Hastings 1 839, Killarney VE 656, Knight 2 989, Main 2 1,, Mount Pleasant VE 5 1,189, Renfrew VE 924, Victoria VE 1,67, Eastside Combined 22 98, n Sales of Eastside townhouses slipped a bit in March, down 18.5% from March of last year and, with 22 sales, also down slightly from February. However, the typical new townhouse listing sold within a median of just 8 days and the benchmark price for an Eastside townhouse increased sharply, up 4.5% from a month earlier, to 98,. This is not a slumping market sector it and appears poised to continue strong into the spring buying season. n For some townhouse owners with a growing family the rather sudden change in the East Vancouver market this year may present an opportunity to upsize to a detached house. In March, for example, more than a dozen Eastside townhouse sold for more than 1 million and 5 sold for more than 1.25 million. At the same time, more than Eastside detached houses were listed at less than 1.3 million and, unlike townhouses, detached house prices have stalled and are currently.4% lower than three months ago. The upsizing strategy is something to consider as the price gap between detached houses and townhouses narrows. n Despite just 22 Eastside townhouse sales in March, all but 4 of the 12 neighbourhoods we monitor posted townhouse transactions. Mount Pleasant, with 5 sales at a benchmark price of 1.18 million was the most popular for buyers, followed by Grandview and Champlain Heights, each with 4 sales. Prices in all three of these neighbourhoods were up from a month earlier, with Grandview posting the largest increase, with a 7.5% surge from February to just over 1 million. Buyers are apparently seeking value: more than half of the Eastside townhouse sales in March were priced at more than 1 million and 71% of new listings priced in excess of 1.25 million sold, the highest ratio for any price point during the month. We continue to see multiple bids on some premium East Vancouver townhouse listings, a further signal of a bouyant spring townhouse market ahead. PAGE

11 Q1 - TOWNHOUSES THE REAL EASTSIDE RESULTS: Q1 18 THE REAL NEIGHBOURHOOD RESULTS: Q1 18 1,, 1,, 1,, 1,, 9, 8, 7, 854, ,4 SALES PRICE QUARTERLY TREND 934,727 92,4 911,492 88, 923,727 9, Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 DAYS ON MARKET QUARTERLY TREND Price Segment () New Listings Added Unit Sales 1,16,7 1,8, Sales-To-New Listings Ratio,,1 3, 3,1,,1 4, 4,1, %,1 5, 1 5,1, 1 %,1 6, % 6,1 7, % 7,1 7, % 7,1 8, % 8,1 8, 5 3 % 8,1 9, 6 % 9,1 1,, % 1,,1 1,2, % 1,2, % Totals % 22 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Unit Sales (by Quarter) Q1 Q2 Q3 Q4 Year-to-Date Totals Change (%) 14.5% 14.5% CHANGE (%) MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Champlain Heights 768, Collingwood VE 3 828, Fraser VE 5 1,39, Fraserview VE 2 96, Grandview VE 6 1,7, Hastings 4 839, Killarney VE 5 656, Knight 9 989, Main 7 1,, Mount Pleasant VE 17 1,189, Renfrew VE 924, Victoria VE 3 1,67, Combined Total 71 98, n No one has to be told that the Eastside townhouse market remains whitehot, but the Q1 performance was simply remarkable. In the face of the mortgage stress test, an increase in lending rates, cumbersome and costly provincial government and municipal regulations, such as speculation taxes and empty home taxes, Eastside townhouse sales soared 14.5% from a year earlier. At the same time, the benchmark price for an Eastside townhouse rose 3.2% from Q4 and is now up 22% from a year earlier to an unprecedented 98,. The typical East Vancouver townhouse sells within a median of 11 days of being listed, so buyers have to be ready to move on an opportunity quickly. This is why it is important to be working with an experienced, local real estate agent who has intimate knowledge of every townhouse complex and every new listing as soon as it becomes available. n In Q1, 5 of the 12 Eastside neighbourhoods reported townhouse benchmark prices higher than 1 million and another, Knight, was very close with a benchmark of 989,. Mount Pleasant not only had the highest benchmark price, at 1.18 million, but also the highest sales, as 17 townhouses were purchased. Buyers are recognizing that the high demand for townhouses will likely keep upward pressure on prices. There is also the trend towards older townhouse strata properties being considered as high-value development sites under provincial regulation that allows an entire complex to be sold if 8% of owners vote in favour of disbanding the Strata Corp. and taking the building and land to the market. We expect to see this trend accelerate on the Eastside over the coming months, because the area has a large number of older strata complexes on relatively large land parcels, some of which have proximity to transit and other new amenities. With maintenance and repair costs mounting, some owners of older townhouse complexes will see such a sale making a lot of sense. PAGE 11

12 JANUARY - APARTMENTS /CONDOS THE REAL EASTSIDE RESULTS: JAN 18 7, 6,, 5,, 4,, 614, , AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN , 587, , , , ,8 AUG. 17 SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN CHANGE January % February March Totals % Price Segment () New Listings Added Unit Sales Listings Ratio, %,1 2, 1 % 2,1, %,1 3, 2 1 % 3,1, %,1 4, 5 3 % 4,1, %,1 5, % 5,1, %,1 6, % 6,1 7, % 7,1 8, 9 45% 8,1 9, % 9,1 1,, 5 4 8% 1,,1 1,2, 8 % 1,2, % Totals % ,251 6, ,9 8, 8 THE REAL NEIGHBOURHOOD RESULTS: JAN 18 CHANGE (%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Champlain Heights , Collingwood VE 7 496, Downtown VE 5 726, Fraser VE 2 563, Fraserview VE 2 58, Grandview VE 4 5, Hastings 5 485, Hastings East 2 453, Killarney VE 3 475, Knight 2 715,.35.4 Main 2 78, Mount Pleasant VE 15 5, Renfrew VE 3 562, Victoria VE 4 538, Eastside Combined , n It was expected that condominium apartment sales would slow in January and that was exactly what happened on the Eastside. Just 71 condos sold during the month, down 37.7% from January 17 and the lowest monthly number in at least two years. New listings were healthy, however, with 144 added to the market in January, up from 87 a month earlier. The result was that the sales-to-new-listing ratio came in at a fairly balanced 49%, though that ratio spiked much higher at certain price points. Despite the slower sales, the typical new listing for a condo apartment was on the January market for a median only 8 days before it sold, a pace that has held steady for months. n The Eastside condo benchmark price in January was 552,, up 1.2% from a month earlier and 2.5% higher than three months ago. But it is still possible for buyers to find condos priced below the benchmark. In January 11 condos sold on the Eastside for less than, and there were new Eastside listings priced at, or less. In a scan of the transactions, the lowest-priced condos were found in Killarney, at a benchmark of 475,; and in Hastings and Hastings East, at 485,9 and 453,8, respectively. The most sales, 15 each, were in the higher-priced neighbourhood of Champlain Heights, at a benchmark of 758,; and Mount Pleasant, at a benchmark of 5,. n The reasons for the dip in January sales likely related to changes in the federal mortgage regulations that required buyers to qualify at higher mortgage rates; an increase in the lending rate; and trepidation about potentially negative housing measures coming in the February provincial budget. We expect these fears to settle down over the next few weeks. With an extensive selection, stable prices and high immigration, the Eastside condominium market should continue to strengthen in 18. PAGE 12

13 FEBRUARY - APARTMENTS /CONDOS THE REAL EASTSIDE RESULTS: FEB 18 7, 7, 6,, 5,, 4, 6, 587, SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB , , , , ,251 6, SEP. 17 OCT. 17 NOV. 17 DEC. 17 JAN. 18 FEB CHANGE anaury % February % March Total % Price Segment () New Listings Added Unit Sales Listings Ratio, %,1 2, 1 % 2,1, %,1 3, 2 % 3,1, 8 %,1 4, % 4,1, %,1 5, % 5,1, %,1 6, % 6,1 7, % 7,1 8, 27 74% 8,1 9, 11 55% 9,1 1,, % 1,,1 1,2, % 1,2, % Totals % , , 24 71, , 11 THE REAL NEIGHBOURHOOD RESULTS: FEB 18 CHANGE (%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Champlain Heights 759, Collingwood VE , Downtown VE 5 758, Fraser VE 565, Fraserview VE 3 589, Grandview VE 6 521, Hastings 7 514, Hastings East 1 462, Killarney VE 1 478, Knight 1 7, Main 5 723, Mount Pleasant VE , Renfrew VE 1 575, Victoria VE 4 545, Vancouver East 4 565, n The BC government s incentive for first-time buyers that offers an interestfree, no-payment five-year loan to match a buyer s downpayment will stop taking applications on March 31, 18. The program provides loans of up to 37,, or 5 per cent of the home s purchase price (up to a maximum value of 7,). The program was popular with Vancouver condo buyers and we advise any first buyers interested to get an application in before the deadline. With the mortgage stress test now applied to all mortgage applications and the recent increase in mortgage rates, many first-time buyers need all the help they can get. n Sales of Eastside condominiums dipped in February, with the 4 sales down.3% from the same month last year, but up from 86 sales in January. Buyers were quite active and we believe this heralds a busy spring market. The typical new listing was on the market for a median of just 7 days before it sold and, based on 189 new listings, the sales-tolisting ratio was a healthy 55%. The sweet spot for buyers and sellers was in the price range of from 5, to,, as 81% of the 21 new listings sold; and from, to 6,, where all 8 of the listing sold. There was buyer action at every price level, which ranged from less than 4, (7 sales) to more than 1.25 million, with 5 sales. n Eastside condo buyers were selective geographically in February, with just 3 neighbourhoods accounting for 7% of the Eastside s total sales. These are Champlain Heights, which includes the River District, where condos sold at a benchmark price of 759,; Collingwood, with 21 sales at a benchmark of 513,; and the ever-popular Mount Pleasant, where 29 condo buyers paid a benchmark price of 557,. The lowest cost condos sold in Hastings East at 462,8; and Killarney, at 478,. PAGE 13

14 MARCH - APARTMENTS /CONDOS THE REAL EASTSIDE RESULTS: MAR 18 7, 7, 6,, 5,, 4, 661, , , , ,251 6, Price Segment () New Listings Added Unit Sales , , OCT NOV DEC JAN FEB MAR Listings Ratio,,1 2, 1 2,1, 1 %,1 3, 3 % 3,1, 4 2 %,1 4, % 4,1, %,1 5, % 5,1, 22 91%,1 6, % 6,1 7, 9 45% 7,1 8, % 8,1 9, % 9,1 1,, % 1,,1 1,2, % 1,2, % Totals % 26 78,76 6, ,58 615,9 OCT NOV DEC JAN FEB MAR CHANGE Janaury % February % March % Total 364-9% THE REAL NEIGHBOURHOOD RESULTS: MAR 18 CHANGE (%) MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Champlain Heights , Collingwood VE 24 5, Downtown VE , Fraser VE 2 573, Fraserview VE 2, Grandview VE 4 529, Hastings 8 521, Hastings East 1 465, Killarney VE 493, Knight 3 711, Main 7 723, Mount Pleasant VE , Renfrew VE 583, Victoria VE , Eastside Combined , n There is great selection of condominium apartment on the Eastside, with 4 new listings added in March, including 43 listed at, or less. There is also many new condominiums coming to the market. The latest figures show that starts of Vancouver multi-family units, most of which are condominiums and many of which are on the Eastside, soared to 1,592 so far this year, up more than % from the same period last year. It is a great time to be a shopping for the exact condo that matches your budget and lifestyle. n Benchmark prices continue to increase, up 2.1% from February and 5.8% higher than three months earlier. Also, it now takes a median of only 8 days for the typical new listing for an Eastside condominium to sell. In March, an average of more than 5 condos sold every day. But I urge condo sellers do not become complacent. A growing inventory of condos for sale, tougher mortgage regulations for buyers and new provincial taxes, has restricted the number and financial strength of buyers. Eastside condo sales were down nearly 15% in March from a year earlier. Sellers must make sure their property is showroom ready and that the listing price is accurate in today s more competitive marketplace. n The price range for Eastside condos is widening. In March the difference between the lowest and highest price condos was more than,, with a benchmark low of 465, in Hastings East to a benchmark high of 775, on the eastern side of Downtown, and 723,8 in the Main neighbourhood. Yet all of these neigbhourhoods are close to each other. This underlines the importance of sellers setting an accurate listing price. Faith Wilson Group is third-party recognized for setting the right value, the price that attracts the most buyers and delivers the best value to the seller in the fastest time. PAGE 14

15 Q1 - APARTMENTS /CONDOS THE REAL EASTSIDE RESULTS: Q1 18 THE REAL NEIGHBOURHOOD RESULTS: Q1 18 7, 7, 6,, 5,, 4, SALES PRICE QUARTERLY TREND 685,3 639,5 565,5 1, , , 592, 563, 517, 525, Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 CHANGE (%) MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Champlain Heights , Collingwood VE 54 5, Downtown VE , Fraser VE 8 573, Fraserview VE 16 2, Grandview VE , Hastings 521, DAYS ON MARKET QUARTERLY TREND Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hastings East 4 465, Killarney VE 4 493, Knight 6 711, Main , Mount Pleasant VE 572, Renfrew VE 7 583, Victoria VE , Combined Total , Unit Sales (by Quarter) Q1 Q2 Q3 Q4 Year-to-Date Totals 17 Price Segment () New Listings Added Unit Sales Listings Ratio,,1 2, 1 2 % 2,1, 1 %,1 3, % 3,1, %,1 4, % 4,1, %,1 5, % 5,1, %,1 6, % 6,1 7, 29 58% 7,1 8, % 8,1 9, % 9,1 1,, 18 % 1,,1 1,2, 28 64% 1,2, % Totals % Change (%) -9.% -9.% n Sales of Eastside condominiums dipped 9% in Q1 compared to a year earlier, but condo buyers were still very busy. During the three-month period 364 Eastside condo apartments were purchased, a consistent pace of about 4 sales every day. The typical new listing was snapped up within a median of 8 days of being put on the market. In Mount Pleasant, condos sold in Q1 and the benchmark condo price increased 5.5% from Q4 and was up % from a year earlier. In Collingwood, 54 condos sold as the price leaped nearly % from three months earlier to 5,, a startling 27.9% higher than in Q1 17. n I want to float a caution here, however. Buyers first of all should not feel pressured into buying, despite all the condo hype and excitement. With a benchmark price of 577,, an Eastside condo is a major commitment. And with about 178 new listings for condos being added to the Eastside each month it is wise to shop the selection carefully before you decide. Do diligent research. For sellers, I advise that the current benchmark price hikes of 9, per month we are experiencing with Eastside condos is simply not sustainable. As well, Vancouver s condo starts are increasing sharply to add competition. If you have any doubts list right now into this remarkable spring market. We remind all parties that Faith Wilson Group offers the industry-exclusive Peace of Mind Guarantee for both Buyers and Sellers to allow confident decisions to be made. 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