Steady demand and low supply benefits home sellers

February saw steady home buyer demand and reduced home seller supply across Metro Vancouver.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region was 2,150 in   February 2020, a 44.9 per cent increase from the 1,484 sales recorded in February 2019, and a 36.9 per cent increase from the 1,571 homes sold in January 2020.

 Last month’s sales were 15.6 per cent below the 10-year February sales average.

 Home buyer demand again saw strong year-over-year increases in February while the total inventory of homes for sale struggled to keep pace.  This was most pronounced in the condominium market.

 There were 4,002 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in February 2020. This represents a 2.8 per cent increase compared to the 3,892 homes listed in February 2019 and a 3.4 per cent increase compared to January 2020 when 3,872 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,195, a 20.7 per cent decrease compared to February 2019 (11,590) and a 6.7 per cent increase compared to January 2020 (8,617).

 There has been increased traffic at open houses and multiple offer scenarios in certain pockets of the market.

 Sales of detached homes in February 2020 reached 685, a 52.9 per cent increase from the 448 detached sales recorded in February 2019. The benchmark price for a detached home is $1,433,900. This represents a 0.7 per cent decrease from February 2019 and a 1.9 per cent increase over the past six months.

 Sales of apartment homes reached 1,061 in February 2020, a 39.8 per cent increase compared to the 759 sales in February 2019. The benchmark price of an apartment property is $677,200. This represents a 0.9 per cent increase from February 2019 and a 3.6 per cent increase over the past six months.

 Attached home sales in February 2020 totalled 404, a 45.8 per cent increase compared to the 277 sales in February 2019. The benchmark price of an attached home is $785,000. This represents a 0.6 per cent increase from February 2019 and a 1.7 per cent increase over the past six months.

For a more detailed view of what’s happening in your neighborhood or building, please reach out to me anytime for a complimentary update. 

11 Tips for Staying Calm During the Time of the Coronavirus.

There's so much fear and uncertainty around the rapidly evolving COVID-19 situation. 

How can we be as calm and happy as we can be, under these circumstances?

For people who are fortunate enough to be in good health (remember gratitude!), in addition to crucial health measures such as washing our hands and practicing social distancing, what can we do in a challenging time like this?

1. Take care of your body. This is important for health and also for mood. Get enough sleep, wake up at a normal hour, eat healthy food, don't drink too much, stick to a regular routine of personal hygiene and dress, and in particular...
2. Keep moving.  This may be tough if your normal exercise routine is disrupted. Figure out how to keep active. Even in a small space you can do yoga, you can watch YouTube videos for cardio workouts, you can use exercise apps, or one of many other resources to give you a work-out at home. Drag those dusty hand-weights out from under the bed. And remember to stand up and walk around frequently. In everyday life, we have to move from Point A to Point B, and it may take more effort to get yourself on your feet. 
3. Beware of information overload. We all want to stay up to date with the latest news, but it's easy to get overwhelmed. Learn what you need to learn, but don't get sucked into the three-hour scroll. Monitor your screen time so you have a solid sense of your habits. You might want to schedule time to check current events—perhaps twice a day—so the news doesn't overtake you.
4. Prepare. When a crisis hits, people want to prepare. People don't always prepare in the most helpful and rational ways, but they want to do something, and they will do something. So, get informed by a sound source such as http://bit.ly/2xa2KFu (BC Health Ministry) about how to prepare wisely. 
5. Tidy up. Yes, I know it sounds ridiculous—such a petty gesture in the face of an overwhelming challenge—but outer order can give us a sense of inner calm and inner focus. It's irrational, of course, but it's true.
6. Help others. One of the best ways to make ourselves happier is to make other people happier—or safer, or calmer, or better prepared. Look for ways to help others, to make sure they're prepared, that they know you're looking out for them.
7. Connect with friends and family.  Reach out to people who might feel isolated. This is a time when technology can really come to our aid! Call, text, do video calls, send funny videos of your dog...we all want to feel connected and cared for. Strong social relationships are a key to happiness, so find ways to help others—and yourself—avoid feeling trapped and lonely.
8. Make good use of this opportunity. Being stuck at home is an opportunity that none of us wished for, but, it's an opportunity, nevertheless. Look for ways to use the time to get things done you otherwise wouldn't be able to do. Go through your closets, clear your clutter, find a YouTube work-out class and get in shape. Do yoga. Cook some new recipes. Get back into meditation. Update your resume. Organize your photos. 

             Keep a journal of this time. It's a milestone in the life of the world, and when this is all over, 

             (and at some  point, it will be over), you may be very glad you kept a record.

9. Catch up on books, podcasts, movies, or TV shows. Is there something ambitious you've been wanting to tackle? 
10. Continue or create comforting rituals. You may already have rituals that help you feel grounded throughout the day. These might be helpful now—but it might also be true that you'll have to adapt now, if your usual comforting ritual is disrupted. Find ways to have pleasant patterns through your day that make you feel grounded and calm. It might be meditation, it might be a cup of your favorite tea, it might be a bedtime story with your children. 
11. Reach out with love. What does it mean? It means many things...and it applies in this situation. The whole world is reeling under the weight of events. I hope that this experience, as terrible as it is, can be an event that reminds us all that we're united in our common human hope for good health and peaceful prosperity, not something that drives us apart. Let's keep our clean hands to ourselves, and our loving hearts open to others.

This self-assessment tool, developed with the BC Ministry of Health, will help determine whether you may need further assessment or testing for COVID-19. You can complete this assessment for yourself, or on behalf of someone else, if they are unable to.

Click  https://rem.ax/2U0o9tn  to take the self-assessment. 

Over the past few months across British Columbia, there has been an industry struggle to renew strata-corporation insurance policies.  With renewals, the cost of insurance has increased anywhere between 50 to 300%.  

Insurance Deductibles have also increased substantially from $25,000 per claim to as much as $250,000 and $500,000 per claim. 

A strata includes ½ duplexes, multifamily low-rise wood-frame apartment buildings, townhouses or high-rise buildings.  

When a water failure or fire occurs in a multi-unit building, multiple units are often affected.  The result is an increase risk for damages and losses by the insurance industry.  

The Strata Property Act states that a strata corporation must insure for full replacement value of all common property, common assets and fixtures.  What this means is that the original construction in a duplex, townhouse, low- or high-rise apartment building is covered under the strata corporation insurance policy. 

Why are the rates increasing dramatically?  

In addition to world-wide catastrophes, we live in a high-risk earthquake zone, and with several major building claims in the province, there are less insurance companies who are covering strata insurance in B.C.

The hardest hit areas are in high-density Metro areas.  Resort properties and communities with developments of more than 250 units are also feeling the crunch. 

With a limited number of insurers, increase in claims, higher property and construction values and a high demand for insurance, a supply/demand imbalance has been created.  Insurers are imposing higher costs in order to minimize their risks. 

How does this affect the Strata owners in B.C.?  

If your strata are faced with a substantial increase in insurance rates, this will be reflected in your annual operating budget.  

For example, if your insurance deductible increases to $100,000, this means that any claims under $100,000 are not covered by your insurance.  And, subject to your bylaws, each owner is likely responsible for damages to their strata lot and the strata corporation is responsible for repairs to common property. 

The result is that many of past insurance costs will be passed onto the affected owners in the event of a claim.  An example would be if an owner of a strata lot has a hose in their washing machine that fails, flooding out the building, the owner could be responsible for the $100,000 deductible.   

I recommend that each homeowner of a strata lot in a strata corporation, consider condo-owner insurance to cover their liability in the event of a claim for damages to their units, the cost of a deductible or the risk of being sued by other owners if they cause a claim.  

If there is a claim for water damage caused by a failed pipe that is part of the Common Property, and, if the claim is more than $100,000, the $100,000 deductible becomes an expense of the Strata Corporation.  The Strata can pay it from the contingency fund or by a special levy to owners without the need for a ¾ vote resolution at a general meeting. 

How can your strata limit the risk?

Firstly, work closely with your insurance broker.  If your strata are faced with a change in insurance or the possibility of no coverage, you must immediately give notice to all owners.  If your strata are unable to obtain insurance, the strata must contact a lawyer to determine the liabilities for owners and council members and what the next steps you should consider.  

As a strata, maintain your buildings.  With all the owners to minimize risks.  Make sure that all individual strata lots with in suite laundry, upgrade the washing machine hoses to braided steel.  Failed rubber hoses in cramped closets and spaces are a chronic cause of water damage. 

Also, address other risks that could result in a claim.  Activities such as smoking as well as barbecues on balconies, heat lamps and in-suite hot water tanks should be addressed.  Repair access or building issues that could raise risks or injury.  Also, update your bylaws!  Bylaws that could result in human-rights complaints or court actions can also increase your risk. 

For prospective Buyers, I would recommend that before you purchase a strata lot, obtain a copy of the strata insurance and confirm the cost, deductibles for water escape and the renewal dates.  Over the coming year, increases will likely continue.