Clarice Coty's Blog » Statistics

New Real Estate Developments Mean Construction Increases on North Vancouver Island

Clarice — Tue, 24 Jan 2012 16:01:56 +0000

Editor’s note: The following story ran in the Jan. 13 edition of the Comox Valley Echo.
New figures show there was a big fall in the number of new houses being built locally last year – but there are signs the situation is starting to turn around.
The details have been compiled by Building Links – the digital newsletter monitoring North Vancouver Island construction activity – which notes a significant drop in construction in the Comox Valley and Campbell River areas last year.
In 2010, building permits for 468 single-family homes were issued compared to 363 last year, said Building Links editor Clarice Coty. That represented a fall of 22 per cent.
In percentage terms, the biggest reduction was in the Town of Comox, down from 105 to 44, or 58 per cent.
Year-on-year single-family home building also declined in Cumberland (down from 27 to 16) and in the City if Campbell River (a fall from 167 to 114)
But more homes were built in the City of Courtenay last year than in 2010, with the numbers rising slightly from 61 to 69. And in the rural areas surrounding the municipalities, there was also growth – from 108 homes in 2010 to 120 last year.
The overall value of local construction activity of all types in 2011 amounted to $175 million, said Coty, but that was down by almost $35 million on the previous year’s $209.5 million total – a 16 per cent fall.
“We expect that new housing starts will increase by about 10 per cent in 2012 due to the new inventory of new lots in the Comox Valley,” she suggested. In addition to single-family homes, Coty noted there had also been permits issued last year for 62 multi-family units in Comox worth a total of $11.6 million in construction costs, and another 66 in Courtenay – including three duplexes with a building permit value of $10.2 million.
She added: “There are at least four condominium and mixed use developments that are slated to start construction in the region during 2012: two in Comox, one in Courtenay and one in Campbell River.
“These projects have received most of their approvals and are waiting for building permits before proceeding. In total they will bring approximately 120 new multi-residential units on to the market.”
She considered the past year had been “challenging” for the construction and real estate industries on the North Island, but added: “This year shows signs of promise.”
Go to the Building Links website to subscribe to your 4 free copies of the newsletter

Real Estate Construction Expected to Rise in Nanaimo

Clarice — Mon, 23 Jan 2012 22:44:27 +0000

There’s reason for quiet optimism in the central Vancouver Island area construction industry, despite lingering effects of an economic downturn.
That’s the message close to 200 audience members heard at the Canadian Home Builders’ Association Central Vancouver Island’s construction industry forum in early January. From interest rates and investment opportunities in Nanaimo, speakers talked of a stable B.C. economy with slow growth in a number of sectors expected in 2012.
Toby Seward, Nanaimo’s director of development, said there are people who want to invest in Nanaimo.
“2011 was a bit of a tough year, but it looks like 2012 is going to be a steady year,” he said. “We review the stats, review what’s going forward and the signs are looking good in our one- to five-year forecast.”
There are numerous real estate developments now happening in Nanaimo, including the Sandstone project in Cedar, the Green Thumb Nursery property on Hammond Bay and the Madill property on Bowen Road, he said. “Oceanview is still talking about moving ahead as well,” he added.
Bill Corsan, Nanaimo’s manager of real estate, said investment opportunities are being driven by low interest rates, flattened land values, low vacancy rates and lack of rental products.
Travis Archibald, Vancouver Island market analyst with the Canada Mortgage and Housing Corporation, said housing starts in Nanaimo fell in 2011, but remain relatively stable and a slight increase is forecast for this year.
“We also saw roughly 1,500 MLS transactions in 2011 and expect a slight increase to that in 2012, but nowhere near past levels,” he said. “Supply is relatively stable and there should be a bit of an increase in demand this year, but it is still a buyer’s market.”
Doug Wittal, CHBA provincial president, detects a sense of optimism among homebuilders in the central Island and likes what he sees in terms of people stepping outside the box.
“We drive the market, we drive the economy and if you’re not willing to change your product and get into the new world, you’re not going to have a market and you’re not going to be working,” he said.
Wittal pointed to the Greenrock industrial park between Bowen and Boxwood roads and the Village at Summerhill townhouse project on Dufferin Crescent as two examples. The Boardwalk is another new real estate development in Nanaimo, featuring ocean view condos and townhomes
“You have to be innovative in today’s world,” he said. “Green and affordability are key words. That’s where we have to go.”

Excerpted from the Nanaimo News Bulletin

Parksville Real Estate Assessments Hold Steady

Clarice — Mon, 23 Jan 2012 21:35:56 +0000

Property values were typically stable or down slightly in Parksville, according to this year’s BC Assessment roll.
The estimated average assessed value of a single family home in Parksville was $317,900, up $900 or 0.3 per cent over the same time last year, according to BC Assessment. The average strata condominium assessment is down $5,000 or 2.2 percent to $222,800.
Vancouver Island Regional Assessor Bill MacGougan said most residential property changes in Parksville are in the minus 10 to plus five per cent range, with commercial property changing slightly less.
The combined value of all taxable residential property in Parksville and Qualicum Beach is $3.8 billion, up $43 million from last year. Commercial property has increased by $3 million to $322 million.

North Vancouver Island Real Estate Assessments See Significant Swings

Clarice — Sun, 22 Jan 2012 20:40:06 +0000

North Vancouver Island homeowners saw good new from their recent real estate assessments if they are planning to staying put, but not so good if they’re looking to sell.
The province lowered values throughout the Tri-port (Port Hardy, Port McNeill, and Port Alice) area, with Port Hardy the hardest hit. Some homes there saw a 15 per cent drop in value. However, some homes in Port Hardy saw a 15 per cent increase.
That means, based on a home valued at $200,000, a $30,000 drop in price, or a $30,000 hike, in some cases.
“Most homes in North Vancouver Island will see moderate decreases or little change in value compared to last year’s assessment roll,” said Vancouver Island regional assessor Bill MacGougan.
“But, a 30 per cent spread is on the wide side. It’s usually not that wide of a dispersion in terms of changes (but) it does probably signify something going on locally.”
The Tri-port area is still better off than Tahsis, where real estate assessments in some areas dropped by 25 per cent.
Port Alice also faces a 30 per cent swing with property values dropping 10 per cent in some areas and climbing 20 per cent in others.
Port McNeill fared a little better with a 20 per cent swing; 10 per cent down in some areas and 10 per cent down in others.

Excerpted from the North Island Gazette

Ladysmith Real Estate Assessments Hold Steady

Clarice — Wed, 18 Jan 2012 18:12:59 +0000

Ladysmith and the surrounding area on Vancouver Island saw few changes in the 2012 real estate Assessment roll.
“Most homes in Cowichan Valley will see moderate decreases or little change in value compared to last year’s assessment roll,” said Vancouver Island regional assessor Bill MacGougan.
Overall Cowichan Valley’s taxable residential assessment roll is $11,868,483,068 this year.
A total of almost $242,000,000 in new residential value has been added due to various changes, including subdivision, rezoning and new construction, according to BC Assessment.
In Ladysmith, the residential general overall taxable value in 2011 was $1,037,804,001, and it is essentially unchanged for 2012, as the total residential value is $1,037,759,701, explained MacGougan.
“It’s so close to being no change at all for individual values in Ladysmith,” he said. “You’ll see changes for most properties of minus-10 per cent to plus-five per cent. The overall assessment is completely stable, but individual property owners will see changes to their assessments either moderately up or moderately down.”
The total value of all property classes in Ladysmith in 2012 is $1,130,325,221, up from $1,125,766,282 in 2011.
“There are two different types of changes affecting roll value,” said MacGougan. “There’s market change — what happened in the market to affect change — and non-market change — new construction, rezoning, subdivision, all these sorts of things that can increase value or create value but are not related to changes in the market.”
Within Ladysmith, $21 million in new residential construction added to the roll, according to MacGougan.
“Last year, it was close to $27 million, so it’s not much different than last year,” he said. “Most jurisdictions are down more than that in their growth.”

Excerpted from the Ladysmith Chronicle

Building Permit Values Down in Victoria for 2011

Clarice — Fri, 13 Jan 2012 16:23:50 +0000

According to Statistics Canada, the total value of building permits issued in the Victoria region of Vancouver Island from January to November last year was $615.9 million, down 11.3 per cent from the $694.3 million recorded in the same 11-month period in 2010.
Both residential and non-residential construction slowed last year with the value of residential permits issued down 11.5 per cent to $406 million, and non-residential dropping 10.9 per cent to $210 million.
November 2011′s seasonally adjusted building permit numbers were down 64 per cent to $43.9 million, from the $122.4 million in the same month in 2010. That $43.9-million was a slight improvement from the $43 million in permits issued in October.
The massive drop in November 2011 was the result of a spike in permits issued in November 2010, led by major military building projects worth more than $100 million There was nothing similar in the non-residential sector in 2011.
According to Greg Baynton, CEO of the Vancouver Island Construction Association, 2011 was a challenge.
“It has been different . . . traditionally things taper off in the summer and then September to Christmas is quite busy, but we had a record volume of projects through July and August and since September there’s not been much going on. It’s been turned upside down,” Baynton told the Victoria Times Colonist newspaper.
Baynton’s data is based on tenders, rather than permits issued, and those may not overlap as permits can be issued before or after a project goes to tender.
“But since September the market has been flatter than usual. It’s quiet and we expect that to continue until the tail end of the first quarter of 2012,” Baynton said, though the sector remains positive 2012 could end on a strong note.
“We are expecting 2012 to be a bit of a turnaround year. There are lots of projects in the pipeline and I expect tendering and construction activity to pick up a lot,” he said.
The residential construction sector is much more cautious after a tough 2011.
Through the first 11 months of last year, there were 576 single-family housing starts, down 27 per cent from 2010. Multiple-family starts were down 18 per cent over the same period.

Comox Valley Real Estate Properties Assessed at $11 Billion

Clarice — Sun, 08 Jan 2012 22:30:54 +0000

Property assessment notices were delivered to more than 34,000 homes and businesses in the Comox Valley last week, and the numbers were generally stable from the previous year.
While there have been valuation variations to several thousand properties this year, they are in a relatively tight range. Of the Valley’s residential properties that have seen changes, the variations are mostly in the range of minus 10 per cent to plus 10 per cent, compared to the 2011 assessments.
Within the City of Courtenay the average assessed value of a single family homes has risen by just half of one per cent over 12 months, from $317,000 in 2011 to $318,500 for 2012.
In the Town of Comox, the increase for the average single-family home is higher, at just over three per cent. The 2011 average of $325,000 has risen to $336,800.
But in both the Village of Cumberland and rural areas of Comox Valley Regional District, average assessments for single-family homes are down.
In Cumberland, the average drop is about 1.5 per cent, from $259,500 in 2011 to $255,800 now.
And in the rural areas A, B and C, the fall is around 3 per cent from an average of $363,000 last year to $352,600 now for properties of up to two acres; and from $487,000 to $470,700 for larger acreages.
For strata condominiums, the average assessed value had fallen for 2012 in both Courtenay and Comox.
In Courtenay it was down by around one per cent from $125,000 to $123,600, and in Comox the drop was about two per cent, from $256,100 to $251,200.
While most commercial properties in the Valley saw very little change in their assessments from last year to this, where there were swings they were over a slightly wider range than that experienced by residential properties. That commercial range was from minus 15 per cent to plus 15 per cent.
Overall, the total assessed value of properties in the Valley now stands at around $11 billion.
Of that total, $9.75 billion is in residential property, with almost $1 billion in commercial assessments. The balance is accounted for by a handful of smaller categories, such as utilities and industrial properties.
The value of new developments in the Comox Valley over the past 12 months includes $127 million worth of residential property and $9.4 million in new commercial space – with more in the pipeline.

Excerpted from the Comox Valley Echo

Campbell River’s Waterfront Real Estate Offers Value For Buyers

Clarice — Sun, 08 Jan 2012 21:54:58 +0000

BC Assessment has generally valued Campbell River properties moderately lower this year over last, and real estate sales prices from 2011 are backing them up.
More than 14,000 Campbell River property owners should expect to see assessment changes in the range of -10 per cent to + 5 per cent.
The Vancouver Island Real Estate Board numbers for 2011, show an 11 per cent drop from 2010 in the average sales price of all homes in Campbell River, to $271,220.
The average sales price in the VIREB region, which covers Vancouver Island north of the Malahat, was $341,537 – down incrementally from 2010’s average price of $342,324.
“The average price for a single family residential lot in Campbell River for the 12 months ending Dec. 31 was $101,802,” said Marty Douglas, managing broker for the Coast Realty Group.
“House prices tell a similar story where the average price for the year clicked in at $286,299, nearly $65,000 lower than in the Comox Valley.
“The only lower average house prices on Vancouver Island are in Port Alberni or in the North Island.”
A shortage of serviced lots in the Comox Valley has driven up prices there.
“The cheapest new lot that you buy in the Comox Valley is probably about $159,000,” said Clarice Coty, publisher of Building Links, a North Island Construction Newsletter. “In Campbell River, typically new lots are coming on the market at about $110,000.”
Campbell River’s waterfront properties are some of the lowest priced waterfront homes on Vancouver Island.
In Campbell River, there were 17 single family waterfront homes sold in 2011 with an average price of $475,376, compared to the West Coast’s 14 sales with an average price of $718,000.
That price was influenced greatly by sales in Tofino, Douglas said. Vancouver Island waterfront properties had selling prices ranging from $1.7 million in Tofino to $100,000 in Gold River.

Excerpted from the Campbell River Mirror

Victoria Area Should Be Safe From Housing Bubble, Says Real Estate Board

Clarice — Wed, 04 Jan 2012 23:36:56 +0000

The capital region is largely insulated from economic factors affecting housing in other parts of the country, says the head of the Victoria Real Estate Board, responding to a warning from economists that home prices are showing signs of a “classic bubble.”
“The important thing to remember is that real estate is local,” board president Dennis Fimrite said last week. Not only has B.C.’s economy proven stronger than those elsewhere in Canada, the local market is bolstered by the limited amount of land for construction.
“If you look specifically at Victoria, we haven’t seen any slowing of the economy here, although there’s a little bit of government downsizing. There are still developers who are breaking ground on new projects.”
A new report from Bank of America Merrill Lynch economists Ryan Bohren and Sheryl King said that in contrast to the U.S., Canadian home prices set new highs this year and are “now showing the signs of a classic bubble.
The report estimates the housing market nationwide is 10 per cent overvalued, adding the number would be higher if mortgage rates weren’t at record lows. “Under more normalized interest rates, home prices would actually look 25 per cent over-valued based on current prices.”
Last month, a total of 482 properties sold through the Victoria Real Estate Board’s multiple listing service. The average price for a single-family house was $592,034 and the median was lower at $530,000. The average price of a condominium was $320,558 and the median was $296,000.

Excerpted from the Victoria Times Colonist

B.C. Assessment Notices – Out Today – Should Hold Steady in Nanaimo

Clarice — Tue, 03 Jan 2012 23:12:47 +0000

A stable housing market could give Nanaimo residents another break from double-digit increases on property values.
B.C. Assessment is mailing out thousands of notices on Vancouver Island this week, which it says will likely show minimal increases compared to previous years. A stable housing market will keep the average increase below 10 per cent with some property owners seeing a decrease of up to 5 per cent.
It’s good news for residents, who have seen year-over-year increases exceeding 20 per cent for the last decade leading up to 2009.
B.C. put a freeze on assessments for 12 months after the economy crashed in late-2008 and assessment numbers haven’t reached the same heights since, as the housing market recovers.
“The change from year-to-year is going to be very minimal because the market continues to remain steady,” said Bill MacGougan, assessor for the Vancouver Island Region. “It’s the same story for most of the province.”
Though Nanaimo hasn’t seen the spike in home construction and renovation as Victoria and Vancouver, the market is “slowly climbing back,” MacGougan said.

Excerpted from the Nanaimo Daily News