Jurock.com BC Real Estate Marketplace

Resistance to change and compliance delay

by Alan   Skinner

Wednesday, June 04, 2014

Last month's update dealing with "municipal wisdom" and "urban planning" drew a number of comments; some at variance with my opinions and some in sync. I was pleased to have prompted these responses and initiated some well considered discussion. To one responder: no, I am not being paid by any North Shore council, but do believe that credit in some of these issues is warranted. Yes, densification is an interesting concept and can elicit strong opinions. I stand by what I wrote then and, if you didn't see it, please visit that Update on my website OnTopOfTheMarket.ca - no, I haven't edited anything I said before ;) Change is always resisted by some.

I would like to talk about another change that is affecting home owners - this one legislated at the BC provincial level. I refer to the introduction over the past few years of Depreciation Reports. This affects those who own (or one day will own) Strata property. Predominantly condo apartments and town homes, the strata councils of which must initiate a process whereby the owners decide exactly when and with who's assistance these reports will be done. In its simplest form this is a long range budget created by the residential development concerned, after itemizing all depreciable assets. It assigns a "usable life" to each asset and prioritizes a timeline for the refurbishment and or replacement of these. sensible owners, generally through the governance of their councils, have been doing a version of this over the years. The process has now been formalized and a Depreciation Report will have to be provided to a prospective buyer in the same way as monthly minutes, bylaws and financial statements are currently provided. Those wanting more info, visit rem.ax/SCBQw9 [Guide12:Strata Property Act].

Significant implication: While not having exact figures on this, I'm going to go out on a limb and say I'd guess that on our North Shore, the residential developments affected fall into two camps. Those who have completed the process and have a Depreciation Report (estimate, say, 35%) and the others (estimate, say, 65%) who range from "not yet started" to "almost completed". Remember, these numbers are just an educated guess. This is significant because the lack of this document when selling can result in a diminished offering price or, worse still, be a significant impediment to sale! Call/ e-mail me if you have any questions.

And now to our April figures for 2014 in comparison to 2013. North Van detached homes sold are up 17% from last year, attached (t/hses) up from last year by 11% and apartments up 17%. The detached average price is up 11% and inventory is down by 14% from 2013. Average prices unchanged (t/hses) and up 2% for (apts). Inventory (t/hses) 121 vs. 141 down from April 30th 2013 and (apt) up 13% from last year for the same date. In West Van, detached number of sales YTD for 2014 is now up by 29% from Apr 2013. Average price of what has sold is up 6% from last year and inventory now down 12% from Apr 30th 2013. On the condo side - attached (t/hses) sold 2014 are up from 2013 at 24 vs 20 units with a 6% increase in average price. Active listings are down year over year from Apr 30th 2013 by 17% (48 vs. 58). Apartments reflect 51 sold in 2014 vs. 49 in 2013 with average price up 15% from Apr 30th 2013 and active listings 3% down from Apr 30th 2013.

Both jurisdictions continue evidencing healthy demand. Inventory is generally down. Do view the 'SnapStats' (what price ranges are selling and which are not) that is sent to subscribers earlier in the month, to see the differences between areas. I'm now forwarding the past 12 month trend for not only N and W/Van but ALL available metro Vancouver neighbourhoods, as many requested. If any locations are not of interest, please ignore those areas.

Contact me with any market enquiries and remember I would be pleased to assist you with the selling or buying of your home or investment property! Visit the website to see and "hear" the new developments.I'm committed to keeping you... www.OnTopOfTheMarket.ca - the "go to" site for N/S R/Estate analysis and jump-off point for FULL market information.

Join those wishing to get the e-mail version of the "Update" and SnapStats - send a request to alanskinner@shaw.ca; phone (604) 626-2526 or visit either/both www.OnTopOfTheMarket.ca and www.HomesOfProvenance.com and you'll be added.

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