WESTSIDE % % 44 14% % % 34 20% % 1,722-1% % $3,358,741 20% $1,229, % $957,772 0.

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1 Q3 WESTSIDE VANCOUVER Q3 18 VS. Q3 17 DETACHED UNIT SALES 139.2% New Listings % AVE. DAYS ON MARKET 44 14% HPI (combined total) 3,358,741 % TOWNHOME UNIT SALES 8 36% New Listings 269.7% AVE. DAYS ON MARKET 34 % HPI (combined total) 1,229,0 7.59% CONDO UNIT SALES % New Listings 1,722-1% AVE. DAYS ON MARKET % HPI (combined total) 957, % JUL, AUG, SEP & Q3 18

2 There is a lot of angst about how changes to the mortgage market are affecting housing affordability in Metro Vancouver. Much of the discussion centres on increases in mortgage rates and the federal mortgage stress test that was expanded in January of this year to include even those buyers who have solid equity with at least a % downpayment. We have already seen two increases in the Bank of Canada s overnight lending rate in the past year and another increase is widely expecting this October. Currently, the BoC rate is 1.5%. But let s take a realistic look at how the resulting higher mortgage rates and the stress test have affected affordability in Metro Vancouver. The benchmark composite price of Metro Vancouver homes has fallen 2.2% over the past six months and the benchmark price of a detached house has gone down by 4% in the same period. This equates to a 22,000 price reduction for all homebuyers and a 61,0 price reduction for a typical house buyer since shortly after mortgage rates increased and the stress test expanded. I suggest that such price reductions more than compensate for the minor increase in mortgage rates that we have seen this year. It is still quite possible to arrange even five-year, fixed-rate mortgage financing from major banks 3.5% today, which remain near historical lows. Ten years ago, for instance, the same bank rate was 5.14%. The mortgage stress test requires applicants to qualify at a five-year mortgage rate at least 2% higher than what is generally available in the market place. Some say this measure alone will freeze about one in five first-time buyers out of the market. Tough love in the mortgage market But let s be honest here. Perhaps some buyers should ask themselves if they are truly capable and willing to take on a large mortgage if they discover they would not be able to handle the payments if the mortgage rate increased by 2%. These buyers are not being frozen out of the market, they are simply being encouraged to wait until their finances are stable enough to buy a home they can truly afford. I am quite confident in the ability of Metro Vancouver homebuyers to meet their mortgage obligations. Recent studies by Canada Housing and Mortgage Corp. and national creditrating agencies show that Vancouver-area homeowners have among the lowest mortgage default rates in the country and also have some of the highest credit scores in Canada. Mortgage increases are seldom welcomed, certainly, but they are a form of tough love that may have been overdue in Metro Vancouver s housing market. Warmest Reguards, 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 Fixed rate, variable rate or both. How to choose the right type of mortgage rate for you. Whether you are acquiring, renewing or refinancing your mortgage, one of the biggest decisions you face as a homeowner is choosing between a fixed or a variable mortgage. Choosing between a fixed or variable rate mortgage is no longer a simple decision, which is why many people are looking for advice to help them decide which type of mortgage will work best, based on their personal circumstances. You can choose to go with a stable, less flexible fixed rate mortgage or you may feel more comfortable with the risks and potential rewards of a variable rate mortgage. For the best of both worlds, you might decide on a mortgage that combines both. It really depends on your tolerance for risk, as well as your current goals and the life stage you are in. Here is some information about each option to help you make the right choice. The case for fixed rate Fixed rate mortgages are chosen most frequently because of the high level of stability they provide. A fixed rate mortgage offers the security of locking in your interest rate for the term of your mortgage. The most popular term is five years. This means you ll know exactly how much principal and interest you will be paying on each regular mortgage payment throughout the term you select. The main advantage of selecting a mortgage with a fixed interest rate is that you can depend on an interest rate that stays the same during the entire term of the mortgage. The case for variable rate Many Canadians shy away from the option of a variable rate mortgage because of the potential risk of rate increases. While there is always a risk of interest rate fluctuations, this concern may be less of a factor than you may think. Many Canadian economic experts believe that a mortgage rate that varies with fluctuations in the bank prime rate will offer the greatest advantage when it comes to longterm savings on interest costs. With a variable rate mortgage, regular mortgage payments are set for the term, even though interest rates may fluctuate during that time. When rates go down, an increased amount of your payment goes towards paying the principal. When rates go up, you ll see an increase in the portion of the payment that pays the interest. With less going into the principal, the amortization period is extended. Some banks variable rate mortgages offer a convertible option. A convertible mortgage can be converted to another term at any time. This feature provides you with security and flexibility, as it enables you to convert to a longer closed term should your variable rate mortgage no longer meet your needs. The case for both: fixed and variable rates in one Not sure about putting all your eggs in one basket? If you have sufficient equity in your home, many banks offer mortgages that can contain both fixed and variable segments. You can split your mortgage between fixed and variable rates with different terms and maturities in order to benefit from potential interest savings and the security of a predictable rate. Whether rates remain stable or fluctuate, this strategy reduces the risk of making a bad decision and could save you thousands of dollars in interest costs. Which option should you take? Advice is important! Your mortgage specialist can help you decide which option best fits your situation and risk tolerance. The reality is, no one can be certain what the future holds. Rather than trying to guess where rates are headed, it s best to consider your own situation - the life stage you are in, your current goals, your objectives and tolerance to risk all come into play. - Kevin Lutz, Regional Manager, Residential Mortgages Follow Kevin on Welcome our new Mortgage Specialists Kathy Wu Mortgage Specialist RBC Royal Bank kathy.x.wu@rbc.com Nikki Voutsilakos Mortgage Specialist RBC Royal Bank nikki.voutsilakos@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 5.34%, 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 3.59%, so even if the new stress test requires you to qualify at 5.34%, you would be paying the contracted rate of 3.59% 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 maximum-allowed -year amortization on a non-insured 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 JULY - SINGLE FAMILY DETACHED HOMES THE REAL WESTSIDE RESULTS: JULY 18 THE REAL NEIGHBOURHOOD RESULTS: JULY 18 5,0,000 5,000,000 4,0,000 4,000,000 3,0,000 3,000,000 2,0, ,806,2 3,141,435 3,0,000 3,0,000 3,1,000 3,1,000 2,9,0 2,0,000 FEB MAR APR MAY JUNE JULY ,738, FEB MAR APR MAY JUNE JULY 3,723,624 Price Segment () New Listings Added Unit Sales 47 4,157, ,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 8,000,000 2 % 8,000,000,000, %,000, % Totals % ,190, Median on Market Average on Market CHANGE February % March % April % May % June % July % Total % MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Arbutus 4 3,785, Cambie 1 2,563, Dunbar 4 2,757, Kerrisdale 2 3,271, Kitsilano 6 2,284, MacKenzie Heights 1 3,546, Marpole 2 2,331, Mount Pleasant VW 1 2,557, Oakridge VW 0 3,5, Point Grey 9 3,6, Quilchena 2 3,948, S.W. Marine 2 3,347, Shaughnessy 0 5,797, South Cambie 0 3,669, South Granville 2 4,390, Southlands 4 3,686, University VW 1 5,559, Combined Total 41 3,356, n What a difference a year makes. In July of 17 there were only detached houses on the Westside listed for 3 million or less and only 5 priced at 2.5 million or less. This July there were 49 detached houses listed at 3 million or less, including 19 offered at 2.5 million or below. Yet sales this July tallied just 41 houses, down nearly % from July 17. This makes two things clear: actions by the provincial, federal and municipal governments have had a major dampening effect on the Westside market; and buyers are firmly in the driver s seat. n With 185 new listings for Westside detached houses added in July and at least twice that many active listings on the market the salesto-new-listing ratio fell to 22%, the lowest level this year. This means that nearly eight of every houses listed for sale in July did not sell during the month. The end result is the benchmark price for a Westside detached house, at 3.35 million, is down 8.4% from July 17. This is the biggest year-over-year benchmark price reduction for a detached house in Greater Vancouver. n The majority of detached house buyers aren t speculators: they are simply seeking a family house in Canada s most desirable neighbourhood. For these buyers now is the time to get the financing solid, line up your subjects and prepare to shop carefully through the best selection we have seen in a long time. Your Westside dream house is out there and probably at a price that you never expected to see again. In July, for instance, 16 buyers bought a Westside detached house for less than 2.5 million and four paid less than 2 million. Faith Wilson Group offers the Peace of Mind Guarantee for Buyers so you can shop with confidence. PAGE 4

5 AUGUST - SINGLE FAMILY DETACHED HOMES THE REAL WESTSIDE RESULTS: AUG 18 5,0,000 5,000,000 4,0,000 4,000,000 3,0,000 3,000,000 2,0, ,738,705 3,0, ,723,624 3,1,000 MAR APR MAY JUNE JULY AUG MAR APR MAY JUNE JULY AUG 4,157,801 3,1,000 Price Segment () New Listings Added Unit Sales 47 3,190,142 2,9,0 0 2,000, % 2,000,001 2,2, % 2,2,001 2,0, % 2,0,001 2,7, % 2,7,001 3,000,000 6 % 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 % 46 3,141,435 2,0, ,612,555 3,1, Median on Market Average on Market CHANGE March % April % May % June % July % Aug % Total % THE REAL NEIGHBOURHOOD RESULTS: AUG 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Arbutus 3 3,677, Cambie 1 2,547, Dunbar 3 2,726, Kerrisdale 5 3,113, Kitsilano 8 2,6, MacKenzie Heights 2 3,352, Marpole 1 2,8, Mount Pleasant VW 0 2,476, Oakridge VW 1 3,090, Point Grey 3 3,339, Quilchena 3 3,839, S.W. Marine 0 3,268, Shaughnessy 1 5,809, South Cambie 0 3,6, South Granville 4 4,292, Southlands 3 3,571, University VW 1 5,4, Combined Total 39 3,278, n The news about the Westside housing market just keeps getting better. I am not fooling. For the past three years we have heard repeatedly that this area represented a runaway market with multiple bids and speculators, mostly foreign, driving home prices to unconscionable highs. Today, however, speculation, foreign buyers and multiple offers are rare on Westside streets. Sales have slowed spectacularly: with just 39 detached houses sold in August, it may be an all-time low for the month. Westside detached house prices have followed suit, falling.2% from August of last year and down 4.4% in the last three months. This is the market many had wished for, but it underscores the old adage to be careful what you wish for because it might come true. n For those who have long aspired to own a Westside detached house, the current downturn is welcome, however. Consider someone looking to buy in Kitsilano, which had the most sales in August of all Westside neighbourhoods. The August benchmark price for a Kistilano detached house was 2.2 million, down 7.4% from the start of the summer. That is a savings of more than 163,000. In some cases, the current listing price is lower than the assessed value, something that is extremely rare. The benchmark price for a Westside detached house is now 3.27 million, but 17 buyers paid less than 3 million in August. n The froth may be gone from the Westside detached housing market, but the fundamentals remain as strong as ever. The city s best schools, best beaches and the most respected and affluent neighbourhoods are all here. A dramatic pendulum has arced into the buyer s favour and I would advise buyers to take advantage of what could be an historic opportunity. PAGE 5

6 SEPTEMBER - SINGLE FAMILY DETACHED HOMES THE REAL WESTSIDE RESULTS: SEP 18 5,0,000 5,000,000 4,0,000 4,000,000 3,0,000 3,000,000 2,0, ,723,624 3,1,000 3,1,000 2,9,0 2,0,000 3,1,000 2,900,000 APR MAY JUNE JUL AUG SEP 47 4,157, APR MAY JUNE JUL AUG SEP 3,190,142 Price Segment () New Listings Added Unit Sales ,141, ,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 3 % 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 % ,612, ,417,7 39 Median on Market Average on Market CHANGE April % May % June % July % Aug % Sep % Total % THE REAL NEIGHBOURHOOD RESULTS: SEPT 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Arbutus 4 3,5, Cambie 1 2,6, Dunbar 5 2,594, Kerrisdale 3 3,254, Kitsilano 3 2,222, MacKenzie Heights 2 3,514, Marpole 2 2,243, Mount Pleasant VW 0 2,542, Oakridge VW 1 2,955, Point Grey 2 3,0, Quilchena 3 3,712, S.W. Marine 3 3,312, Shaughnessy 1 5,956, South Cambie 0 3,415, South Granville 2 4,2, Southlands 3 3,593, University VW 1 5,276, Combined Total 36 3,254, n You have to consider that 1,000 is a lot of money. It would easily cover a mortgage rate that was a point higher than what you have been paying. It could completely kit out a kitchen. It is far above the average annual income in Vancouver. It is also what a buyer of a detached house on the Westside would have pocketed if they had bought this September rather than in September of last year. The benchmark price of a Westside detached house is now 3.5 million, down 4% from the same month in 17, and 0.7% below August of this year. Buyers fear rising mortgage rates but the recent higher lending costs are among the reasons why Westside detached house prices have been tracking down for most of this year. n There are a number of factors to consider before a Westside detached house owner decides to take advantage of the city s new density zoning that has turned every building lot in the city into a potential duplex, triplex or two-house lot with the addition of a laneway house. The zoning adds value to detached house lots, but if a portion of a private house is converted for rental income, it could have an affect on the capital gains tax allowance on a private residence. Also, there are a lot of new rental units under construction in Vancouver, some 2,700 of them. This could affect rental income projections on a private rental suite. n Westside detached house sales were down 56.1% in September compared to the same month last year, with 36 sales, the lowest monthly level this year. At the same time 2 new listings were added to the market. This created a sales-to-new listing ratio of 17%, the strongest buyer s market Vancouver has seen in decades. PAGE 6

7 Q3 - SINGLE FAMILY DETACHED HOMES THE REAL WESTSIDE RESULTS: Q3 18 5,0,000 5,000,000 4,0,000 4,000,000 3,0,000 3,000,000 2,0, ,234,422 3,690,000 Unit Sales (by Quarter) SALES PRICE QUARTERLY TREND 3,982,8 3,8,000 3,784,358 3,0,000 Q1 Q2 Q3 Q4 Year-to-Date Totals 3,681,343 3,0, Price Segment () New Listings Added Unit Sales 3,385,741 2,900,000 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 DAYS ON MARKET QUARTERLY TREND ,000, % 2,000,001 2,2, % 2,2,001 2,0, % 2,0,001 2,7,000 53% 2,7,001 3,000, % 3,000,001 3,2,000 48% 3,2,001 3,0, % 3,0,001 3,7, % 3,7,001 4,000,000 6 % 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 % Q3 17 Q4 17 Q1 18 Q2 18 Q Change (%) -34.3% -39.9% -.2% -36.0% Median on Market Average on Market THE REAL NEIGHBOURHOOD RESULTS: Q3 18 CHANGE(%) MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Arbutus 13 3,5, Cambie 4 2,6, Dunbar 17 2,594, Kerrisdale 12 3,254, Kitsilano 2,222, MacKenzie Heights 5 3,514, Marpole 7 2,243, Mount Pleasant VW 1 2,542, Oakridge VW 3 2,955, Point Grey 18 3,0, Quilchena 8 3,712, S.W. Marine 5 3,312, Shaughnessy 2 5,956, South Cambie 0 3,415, South Granville 8 4,2, Southlands 3,593, University VW 5 5,276, Combined Total 139 3,254, % n In the third quarter of this year 58 Westside detached houses sold for less than 2.5 million compared to just at the same time last year. In this Q3, nearly two dozen buyers paid 2 million or less for a Westside house, a price that would have likely caused a stampede of buyers less than 18 months ago. The Westside detached market has changed, certainly, but for many buyers the shift has been welcomed. Consider a family that had aspired to own a house in wonderful Point Grey. In Q3 17, 14 house buyers bought in Point Grey at a benchmark price of 4.04 million. In Q3 18, 18 buyers bought a house in Point Grey, but they paid a benchmark of 3.2 million: that is 800,000 difference for the identical neighbourhood. So, when the media tells you how bad the detached housing market has become, remember there is another side to the story a story of savvy, happy buyers finally realizing their dream. n For Westside detached house sellers, the market has become more challenging but it remains active. In Q3, 139 detached houses sold for a benchmark price of 3.25 million, which is an impressive performance by any measure. Of the 536 new detached listings in Q3, 25% of them sold. Yet there were sales in 16 of the 17 Westside neighbourhoods we monitor and sales at every price range from less than 2 million (13 sales) to more than 8 million (6 sales). Sellers must list the price accurately and be certain the property is in show home condition. Faith Wilson Group is third-party recognized for achieving higher prices and faster sales on the Westside than the industry average. We ve done it for more than years through all market cycles and we can do it for you today. PAGE 7

8 JULY - TOWNHOUSES THE REAL WESTSIDE RESULTS: JULY 18 THE REAL NEIGHBOURHOOD RESULTS: JULY 18 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,000, ,317,459 1,1, ,534,965 1,473,000 FEB MAR APR MAY JUNE JULY FEB MAR APR MAY JUNE JULY 1,488,7 1,227,0 Price Segment () New Listings Added Unit Sales 8 1,446,0 1,382, , % 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 77 39% ,338,293 1,252,0 17 1,526,074 1,262, Median on Market Average on Market CHANGE February % March % April % May % June % July % Total % MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 2 1,7, Coal Harbour 1 1,819, Downtown VW 0 1,014, Fairview VW 2 1,119, False Creek 4 931, Kerrisdale 2 1,564, Kitsilano 1,092, Marpole 0 1,118, Mount Pleasant VW 1 1,256, Oakridge VW 2 1,628, Point Grey 0 1,159, Quilchena 0 1,539, Shaughnessy 0 2,526, South Cambie 0 1,871, South Granville 2 1,656, University VW 0 1,761, West End VW 0 1,222, Yaletown 3 1,737, Combined Total 1,288, n Sales of Westside townhouses dropped 34.8% in July, to homes, as compared to July 17. Perhaps more telling is that it now takes an average of 28 days for a townhouse to sell, 45% longer than it did a year ago. But I would advise sellers who trust that their townhouse is listed at true market value to stick to their guns. Do not be panicked into dropping the price because of a perception of a falling market. There is simply too low a supply and too high a demand for townhouses on the Westside to see substantially lower values. Yes, the benchmark price has been declining, but it is in the range of 1% over the past three months and even lower in half of the 18 Westside neighbourhoods we monitor. Westside benchmark townhouse prices remain 4.6% higher than they were in July 17, at 1.28 million. n In July 77 new listings for townhouses were added to the Westside market down 14.4% from July of last year. In some neighbourhoods including Point Grey and the Westend new listings virtually disappeared. Yet there remains solid demand for townhouses, witnessed in the 80% sales-to-new-listing ratio at some key price points. Basically, townhouses listed at from 1.1 million to 1.5 million in July achieved a.1% sales success ratio, indicative of a seller s market. n Townhouse sellers must have patience and be certain their property is in great condition to show to prospective buyers. Don t worry about a huge spike in competitive listings: new listings have been declining for four straight months and only 7 new townhouse projects came to the market in July, with the majority of pre-sales priced much higher than in the resale sector. In many ways Westside townhouse owners could find this summer an ideal time to list. PAGE 8

9 AUGUST - TOWNHOUSES THE REAL WESTSIDE RESULTS: AUG 18 THE REAL NEIGHBOURHOOD RESULTS: AUG 18 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,000, ,534,965 1,473,000 1,488,7 1,227,0 MAR APR MAY JUNE JULY AUG MAR APR MAY JUNE JULY AUG 8 1,446,0 1,382,733 Price Segment () New Listings Added Unit Sales ,338,293 1,252,0 0 0, ,001 0, ,001 0, % 0, , , , % 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 3,000,000 1 % 3,000, % Totals % 17 1,526,074 1,262, ,3,9 1,0, Median on Market Average on Market CHANGE March % April % May % June % July % Aug % Total % MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 0 1,157, Coal Harbour 1 1,889, Downtown VW 1 1,018, Fairview VW 7 1,111, False Creek 3 922, Kerrisdale 1 1,483, Kitsilano 3 1,075, Marpole 0 1,073, Mount Pleasant VW 1 1,264, Oakridge VW 1 1,532, Point Grey 0 1,112, Quilchena 0 1,496, Shaughnessy 1 2,359, South Cambie 1 1,813, South Granville 2 1,578, University VW 2 1,664, West End VW 1 1,224, Yaletown 2 1,784, Combined Total 27 1,267, n The August slowdown in townhouse sales on the Westside coincided with a citywide dip in new townhouses being built, but fortunately there is a healthy selection of resale units on the market. August saw 81 new listings for townhouses added to the market, a 17% increase compared to August 17. And since it now takes longer for a townhouse to sell, an average of 39 days, there are likely more active listings for townhouses carried over from July. n August is traditionally a modest month for sales and this year was certainly no exception. Townhouse transactions were down 35.7% from August of last year to the lowest monthly level so far in 18, at 27. The sales-to-new listing ratio was 33%, firmly a buyer s market. Despite the low number of sales, townhouse prices are staying relatively stable. In August, the Westside benchmark sale price was 1.26 million, down 1.6% from July and 2.8% lower than three months ago. There were 8 new listings at 1 million or less in August, however, 7 of which sold. Three buyers purchased a townhouse in the False Creek neighbourhood at benchmark of 922,000 in August. The most popular price point for buyers in the month was from 1.4 million to 1.75 million, accounting for one-third of all August townhouse sales. n Despite an increase in Vancouver housing starts this year, it is not translating into new townhouse starts. So far in 18 just 44 townhouses began construction in the city, down from 127 at the same time in 17. Not a single new townhouse broke ground in August and just 15 were completed in the month. Due to high land prices and rising costs for building material and labour, the focus is on building higher-density condo apartments than townhouses. I expect townhouse prices to remain stable. PAGE 9

10 SEPTEMBER - TOWNHOUSES THE REAL WESTSIDE RESULTS: SEP 18 THE REAL NEIGHBOURHOOD RESULTS: SEP 18 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,000, ,488,7 1,227,0 8 1,446,0 1,382,733 APR MAY JUNE JUL AUG SEP APR MAY JUNE JUL AUG SEP 1,338,293 1,252,0 Price Segment () New Listings Added Unit Sales 17 1,526,074 1,262, , ,001 0, ,001 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 % ,3,9 1,0, ,4,079 1,2,7 12 Median on Market Average on Market CHANGE April % May % June % July % Aug % Sep % Total % MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 2 1,7, Coal Harbour 1 1,794, Downtown VW 1 1,009, Fairview VW 9 1,092, False Creek 2 880, Kerrisdale 1 1,9, Kitsilano 4 1,037, Marpole 0 1,053, Mount Pleasant VW 0 1,259, Oakridge VW 0 1,465, Point Grey 0 1,057, Quilchena 1 1,394, Shaughnessy 0 2,8, South Cambie 0 1,7, South Granville 1 1,486, University VW 3 1,586, West End VW 0 1,184, Yaletown 2 1,767, Combined Total 28 1,229, n New listings for townhouses on the Westside were relatively healthy in September, with 7 being added to the market, the highest level in four months. Sales, however, slipped to the second-lowest monthly level this year, down to 28, which was the lowest since January and 54.8% below September 17. We are seeing a sustained slowdown in Westside townhouse sales, with transactions now 31% below last year for the 9 straight months. This has had a bearing, naturally on prices. The Westside benchmark townhouse price in September was 5.7% lower than three months earlier and was down 3% from August, at 1.22 million. n With so few sales, it is difficult to define price trends in individual neighbourhoods, but suffice to say that townhouse prices have tracked down in every part of the Westside, with some neighbourhoods experiencing % price reductions since the early summer. Yaletown, at 1.76 million, and Downtown, 1 million, were the only areas to see sale price declines of less than 1% in the past three months. n With a sales-to-new-listing ratio of 26% in September, the Westside townhouse market is steeply slanted in favour of buyers. And, frankly, more should be taking advantage of what I suspect is a rare window of opportunity. There are only 129 new townhouses under construction in all of Vancouver. There were none being built in Kitsilano or Downtown as of September. Pent-up demand for townhouses will start to drive prices higher and the wide selection will begin to narrow The Westside townhouse market right now represents perhaps the best investment decision in Vancouver s housing market. In September 18 Westside townhouses were listed between 0,000 and 900,000 and nearly a third of new listings were for 1 million or less. It is good time to be seriously shopping. PAGE

11 Q3 - TOWNHOUSES THE REAL WESTSIDE RESULTS: Q3 18 THE REAL NEIGHBOURHOOD RESULTS: Q3 18 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,0,000 1,000, ,475,396 1,282,000 Unit Sales (by Quarter) SALES PRICE QUARTERLY TREND 1,469,458 1,277,0 1,429,411 1,3,800 Q1 Q2 Q3 Q4 Year-to-Date Totals 1,398,158 1,265,000 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 DAYS ON MARKET QUARTERLY TREND Price Segment () New Listings Added Unit Sales Change (%) -26.3% 33.3% -36.0% -32.4% 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 % 1,388,875 1,269,000 Q3 17 Q4 17 Q1 18 Q2 18 Q Median on Market Average on Market MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Cambie 5 1,7, Coal Harbour 3 1,794, Downtown VW 4 1,009, Fairview VW 1 1,092, False Creek 880, Kerrisdale 9 1,9, Kitsilano 4 1,037, Marpole 19 1,053, Mount Pleasant VW 2 1,259, Oakridge VW 3 1,465, Point Grey 0 1,057, Quilchena 1 1,394, Shaughnessy 2 2,8, South Cambie 1 1,7, South Granville 5 1,486, University VW 5 1,586, West End VW 1 1,184, Yaletown 9 1,767, Combined Total 96 1,229, n Do you know how many new townhouses were started this year in all of Kitsilano, Point Grey and Downtown Vancouver neigbhourhooods? None. As of Q3, there were only 129 townhouses under construction in the entire city and most of these are on the Eastside. That is among the reasons why I believe Westside townhouses represent a good buy right now. At a benchmark price of 1.2 million townhouses are 2 million less than a detached house. As well, townhouses prices have eased considerably. The Q3 townhouse benchmark price was 5.7% lower than in Q2: that is a 70,000 saving compared to June 1. n With 96 Westside townhouse sales in Q3 and 269 new listings, the sales-to-new-listing ratio was 36%, which is considered a slight buyer advantage. But the ratio was much higher at certain price points. It was 0% for the 4 Westside townhouses priced at 700,000 or less, but it was higher than 62% for the 38 townhouses listed at from 1.1 million to 1.3 million. Buyers are very value sensitive. When the list price was from, 1.3 million to 1.4 million range, only % of the 25 listings sold, yet 63% of the 16 townhouses listed just a bit higher, at from 1.4 million to 1.5 million, sold. Accurate list prices are important in the townhouse sector because many of the products are similar. n In Q3, it took an average of 34 days for a new listing for a townhouse to sell, which is the longest list time in more than a year. Buyers, therefore, have more time to shop and compare closely. I advise buyers to do just that and for sellers to appreciate that they must work harder with their real estate agent to make sure that there townhouse proves irresistible in a more challenging market. PAGE 11

12 JULY - APARTMENTS /CONDOS THE REAL WESTSIDE RESULTS: JULY 18 1,0,000 1,0,000 1,0,000 1,000, , , , ,4, , ,058, ,000 1,062,0 846,0 972, ,0 Price Segment () New Listings Added Unit Sales 986,652 8, , ,0 FEB MAR APR MAY JUNE JULY FEB MAR APR MAY JUNE JULY , % 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 % Median on Market Average on Market CHANGE February % March % April % May % June % July % Total 2,672 1, % THE REAL NEIGHBOURHOOD RESULTS: JULY 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 4 726, Coal Harbour 9 1,146, Downtown VW , Dunbar 0 7, Fairview VW , False Creek , Kerrisdale 3 928, Kitsilano , Marpole , Mount Pleasant VW 4 585, Oakridge VW 1 1,137, Point Grey 3 628, Quilchena 1 1,144, S.W. Marine 2 513, Shaughnessy 0 657, South Cambie 3 981, South Granville 0 1,059, Southlands 0 8, University VW 16 1,012, West End VW 684, Yaletown , Combined Total , n To be honest I must admit I am not surprised that Westside condominium sales were down 47.3% in July compared to the same month a year earlier, at 227 sales. We saw the new condo market taking a substantial hit this year, which is often a harbinger for the overall condo market. In January, for example, new Vancouver condo projects were achieving 91% pre-sales. Today it is around 42%. The condo sector is much more sensitive to investor sentiment than other types of housing. About 24% of new Vancouver condos were being sold to foreign buyers but this has slowed since the foreign buyer tax was increased to % in February. n Also affecting the condo market is the tougher mortgage restrictions and slightly higher mortgage rates, which have taken some first-time buyers out of the action. n But, all that being said, for cost-conscious investors or buyers this summer represents a great time to be shopping for a Westside condo. In July, for example, 27 buyers purchased a Westside condominium apartment for 5,000 or less. This compares with only one 2 condos sold on the Westside at this price level in July 17. This July there were 84 Westside condos listed for 0,000 or less, compared to 7 at the same time last year. It has been a long, long time coming but condo buyers now have a clear advantage. The condo inventory is high and July benchmark prices were down from a month earlier in of 24 Westside neighbourhoods. PAGE 12

13 AUGUST - APARTMENTS /CONDOS THE REAL WESTSIDE RESULTS: AUG 18 1,0,000 1,0,000 1,0,000 1,000, , , , ,058, , ,062,0 846,0 972, ,0 986, ,000 Price Segment () New Listings Added Unit Sales 990, , , ,0 FEB MAR APR MAY JUNE JULY 17 FEB MAR APR MAY JUNE JULY , % 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 % Median on Market Average on Market CHANGE March % April % May % June % July % Aug % Total 2,683 1, % THE REAL NEIGHBOURHOOD RESULTS: AUG 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 5 728, Coal Harbour 6 1,186, Downtown VW , Dunbar 1 732, Fairview VW , False Creek 9 841, Kerrisdale 3 945, Kitsilano , Marpole 7 625, Mount Pleasant VW 2 574, Oakridge VW 2 1,133, Point Grey 4 636, Quilchena 2 1,169, S.W. Marine 1 524, Shaughnessy 1 695, South Cambie 1 976, South Granville 0 1,045, Southlands 0 848, University VW , West End VW , Yaletown , Vancouver West , n What a difference a year and an avalanche of government measures has had on the Westside condominium apartment market. In August of this year, 180 condos sold on the Westside. In August of last year, 318 condos sold. New listings, however, remained almost the same, with 4 added this August, just 15 more than in the same month last year. Of course this means the Westside has now moved into a buyer s market: a 53% drop in sales will do that. n Condo priced slipped lower in August, down 1.2% from a month earlier and 2.4% below the level in May, but at a benchmark Westside price of 825,000, many buyers likely believe they will go lower. And they are right, if current trends continue. Aside from the high number of resale condos on the Westside market 1,064 were added in the past two months and 44% of them sold there are now 3,777 new condo apartments under construction in Vancouver, up from 2,125 at the same last year. The laws of supply and demand dictate that condo prices should continue to ease down. n What should a condo seller do? Take a good hard look at your listing price. If you are certain your condo apartment is worth current market value, stick with it. If you have doubts, talk to an experienced real estate agency that is known for listing-price accuracy. Faith Wilson Group provides the exclusive Peace of Mind Guarantee for Sellers, which should help you make the right decision. PAGE 13

14 SEPTEMBER - APARTMENTS /CONDOS THE REAL WESTSIDE RESULTS: SEP 18 1,0,000 1,0,000 1,0,000 1,000, , , , ,062,0 972, , , ,0 793,0 825, , , ,0 APR MAY JUNE JUL AUG SEP 17 9 Price Segment () New Listings Added Unit Sales 1,005, APR MAY JUNE JUL AUG SEP , % 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 2,000,000 17% 2,000, % Totals % , Median on Market Average on Market CHANGE April % May % June % July % Aug % Sep % Total 2,611 1, % THE REAL NEIGHBOURHOOD RESULTS: SEP 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months Cambie 3 713, Coal Harbour 13 1,123, Downtown VW , Dunbar 1 704, Fairview VW , False Creek , Kerrisdale 4 924, Kitsilano , Marpole 9 8, Mount Pleasant VW 3 578, Oakridge VW 3 1,114, Point Grey 1 616, Quilchena 4 1,1, S.W. Marine 0 9, Shaughnessy 1 683, South Cambie 1 957, South Granville 0 1,0, Southlands 0 8, University VW 1,000, West End VW , Yaletown , Combined Total 0 804, n In September Westside buyers were snapping up an average of more than six condominium apartments every day at a benchmark price of 804,000. The typical new listing - there were 686 of them sold in a median of 12 days. Still, this is defined as a slow condo market on the Westside, with transactions down 45.8% from September of 17 and, so far this year, running 32.6% slower than for the first nine months of last year. n In some neighbourhoods any suggestion of a slowdown may have seemed absurd. In the Downtown, 49 condos sold in September; 25 sold in Kitsilano; and another 28 sold in Yaletown, the three most active Westside areas. But even here, benchmark prices were lower than in August and from three months earlier. In Downtown, for instance, the benchmark price of 678,900 was down 7.8% (that is nearly 53,000) from three months ago. Across all of the Westside, the benchmark condo price in September was 2.5% lower than a month earlier and 4.5% below the price in June. n I do not seem a sudden rally in Westside condo prices coming this year, though demand will remain steady. Vancouver s inventory of new and resale condos is rising. For condo sellers, this is the time to make sure your listing price matches the current market reality and that you are working with an experienced real estate agency with a proven marketing program. This will remain a competitive market and preparation is vital for sellers to retain an edge. PAGE 14

15 Q3 - APARTMENTS /CONDOS THE REAL WESTSIDE RESULTS: Q3 18 1,0,000 1,0,000 1,000, , , ,000 0, , ,000 SALES PRICE QUARTERLY TREND 980, ,0 1,094,645 8,0 1,007,373 8, , ,000 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 DAYS ON MARKET QUARTERLY TREND Unit Sales (by Quarter) 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, % 8 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q1 Q2 Q3 Q4 Year-to-Date Totals ,087 1,423 1,188 3, , , Median on Market Average on Market Change (%) -11.2% -27.8% -38.3% -26.2% THE REAL NEIGHBOURHOOD RESULTS: Q3 18 MLS Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year Cambie , Coal Harbour 32 1,123, Downtown VW , Dunbar 3 704, Fairview VW , False Creek , Kerrisdale , Kitsilano , Marpole 39 8, Mount Pleasant VW 578, Oakridge VW 6 1,114, Point Grey 9 616, Quilchena 8 1,1, S.W. Marine 4 9, Shaughnessy 2 683, South Cambie 5 957, South Granville 0 1,0, Southlands 0 8, University VW 48 1,000, West End VW , Yaletown , Combined Total , n Coal Harbour and the University area of Westside Vancouver are considered two of the most exclusive neighbourhoods in Canada and are among the most expensive for condominium buyers. Yet in Q3, 80 condo apartments sold in these two neighbourhoods at a benchmark price of more than 1 million. Another 8 sold in Quilchena at a 1.1 million benchmark. Across the Westside, 733 buyers purchased a condo in the latest three-month period, paying a benchmark of more than 804,000. It is only because of the recent sky-defying sales that this is considered a slowing condominium market. There are many leading cities in the world where such a sales performance would be recognized as a boom. n Benchmark condominium prices on the Westside have come down sharply in the past six months, however. The benchmark condo price in Q3 was down 4.5% compared to Q2, though it was nearly unchanged (up 1%) from a year earlier. In Q3, 85 Westside condos sold for less than 5,000 and 41 of these sold at 0,000 or less. Condominium prices will not be seeing the kind of increases experienced in 16 and 17 this year, for a number of reasons. Tougher mortgage regulations and higher mortgage rates have taken some buyers right out of the market, at least for the short term. Also, there is a huge amount of inventory, with 1,722 new resale listings added in Q3 and nearly,000 new condos under construction in city. This active market is tilting in the buyer s favour. PAGE 15

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