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Mortgage Rates make Vancouver Housing more affordable!

Every day we read about how challenging it is to afford a home in Vancouver, and while prices are high, types of available housing are broad and mortgage rates are doing their part to maximize your purchasing power. Without having to compromise any privileges 5 year fixed rates are as low as 2.89%, which equates to payments under $1900/mth for a $400,000 mortgage. Families can qualify for slightly over 6 times their gross annual income and the quick factor for borrowing at this rate is $4.67/$1000 financed.

Talk to your Mortgage Advisor today about the choices and purchasing power for you and your clients.

The Millennials are here, but are we ready?

The Vancouver Sun, September 15, 2014

‘Millennials’ are the kids crammed into overcrowded B-Line buses headed to and from UBC. They are the many under-employed servers and clerks, unpaid interns and contract workers.

They are frequently dissed as being entitled, lazy and arrogant. But they are also the largest demographic group to come along since the Baby Boom.

What they do, want and aspire to already influences everything from fashion to urban design.

But for urban planners, the most important question isn’t what do they want now, it’s what will they want in the future.

Because meeting their future wants and needs means building that infrastructure now — whether it’s more transit and more tightly packed cities, or more suburbs and freeways.

At this point, no one’s sure which they will choose.

Right now, they are flooding into urban centres like Vancouver.

“It has built ‘up’ instead of ‘out’. It has good transit, walkability. It has an interesting arts scene, music, cafes and shopping,” says Markus Moos, who teaches urban planning at the University of Waterloo. “Millennials seek vibrancy.”

TransLink statistics indicate that Millennials are three times more likely to live close to transit, and much more likely to live downtown than other age group.

Unlike previous generations, Millennials no longer see getting a driver’s license or owning a car as rites of passage.

Only half of Metro’s 16-to-19-year-olds can drive, while among 25- to 29-year-olds, car ownership has dropped 10 per cent in the last decade.

But as they get a bit older and start to have families, will they want to raise their children downtown?

If more of them do, something will have to be done soon because Yaletown’s only elementary school already can’t cope with the unprecedented increase in the number of children.

Then, there is the question of housing. Some Millennials may be content to raise children in one- or two-bedroom apartments and condos. There are some larger units, but Moos says many of those are already beyond the reach of a generation strapped with larger debts and poorer job prospects than their parents.

To make it work, he says, there will likely need to be some form of government intervention. What kind is an open question.

It could, for example, be encouragement to developers to build different forms of housing with more shared communal space to keep costs down, even higher density or some sort of incentive to developers to forego expensive finishes like granite counters and stainless-steel appliances.

Of course, the Gen-Yers may decide they want to return to their suburban roots where land prices mean cheaper housing.

But Moos believes that returning Millennials will want a different, more vibrant suburban experience that is close to what they have become accustomed to in the cities, and less reliance on cars because many are not only used to transit, they prefer it.

Accommodating such tastes means that suburbs need to change. Short of sprawling ever further onto prime agriculture land, adding more cars, more exhaust and more carbon into the air, planners and politicians need to be preparing for higher-density developments and more transit rather than more roads.

American studies suggest that young adults are more practical about their transportation choices and more concerned about the environmental impacts of their choices.

They will walk or ride bikes if that is easiest. For longer trips, they prefer buses and rapid transit because it gives them time to catch up on social media or work. For trips to big-box stores, Millennials are the most likely to use car co-ops and car shares.

So what does it all mean for planners?

Transit. Transit. Transit. That is one of the clearest messages that Moos says we should be getting.

Regardless of whether the Millennials choose downtown or the suburbs, they are likely to continue to demand access to transit.

Two-thirds of the region’s jobs and nearly half its residents are located within walking distance of rapid transit. And while the population increased by 15 per cent between 2002 and 2012, transit ridership increased by 85 per cent to 1.2 million riders a day, 233.9 million trips a year on buses, trains and SeaBus.

But the system needs improving to meet rising demand, and TransLink needs money beyond its current budget of $1.2 billion a year to do that.

And that is only going to be possible if citizens approve new funding sources for the regional transportation authority in next spring’s referendum.

Beyond that, Moos says, Millennials’ choices of where they live will definitely impact housing prices.

And while some people speculate that this will mean higher prices for suburban single-family homes, Moos suggests the bigger demand might be for urban condos.

There, the competition won’t only come from other Millennials, but from their deeper-pocketed parents, who are discovering the joys of downtown living now that the kids have left home.

Vancouver real estate breaks $2M mark east of Fraser Street

CBC News, September 24, 2014

East Vancouver prices mirror what’s happening on upscale West Side.

Vancouver’s East Side may no longer be the affordable, funky alternative to the tony, high-priced real estate west of Main Street.

At least if a recent sale is any indication.

A house at 846 E 27th Avenue, on a 33 ft. wide lot just east of Fraser Street has sold for the asking price of $2,150,000. And the realtor who listed it says the new buyers traded UP from their last home on the West Side.

“It’s significant because it shows there is not that sort of same discrepancy between the East Side and the West Side as there once was. I think the gap has narrowed in terms of price,” said Paul Eviston, of RE/MAX Select Properties.

As prices rise in the West Side, more buyers are finding they get more for their money east of Main Street, Eviston says.

“There are many buyers that have sold their homes on the West Side and have moved to the East Side, put money in the bank, and there are many buyers that once would buy only on the West Side that are considering the East Side based on the value quotient.”

The house is three years old and comes with a laneway house. Both structures have a combined total of six bedrooms and six bathrooms within 4,150 sq. ft. The house was only listed a couple of days before selling in the spring.

The house was built by Mercia Construction. The company built two other similar houses on the same block, without laneway houses, that sold for $1,395,000 just four years ago.

“There are funky, affordable neighbourhoods in East Vancouver but they’re a little further east now and they are different neighbourhoods than they were five and 10 years ago,” said Eviston.