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Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.

The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.

"Affordability is the catalyst for the vast majority of purchasers in today's housing market," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "While homeownership is still within reach in many major centres, levels are slipping. There is a growing sense, on both sides of the fence, that the time to act is now."

Markets experiencing the tightest inventory levels include Toronto (- 41 per cent); Kitchener-Waterloo
(-33 per cent); Ottawa (- 30 per cent); Victoria (- 30 per cent); Greater Vancouver (- 27 per cent); Halifax-Dartmouth (- 19 per cent); London-St. Thomas (- 18 per cent); Regina (- 16 per cent); and Winnipeg (- 13 per cent). Conditions were still balanced, but starting to tighten in Calgary, Edmonton and Saskatoon, particularly in the single-family detached category.

The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121 per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent), London-St. Thomas (55 per cent) and Calgary (47 per cent). Western Canadian cities dominated the list of centres with the highest increases in price appreciation. These included Victoria at 25.5 per cent, Kelowna at 22 per cent, Greater Vancouver at 19.5 per cent, and Winnipeg at 17 per cent. St. John's (23 per cent) and Toronto (19 per cent) were also among the frontrunners for price growth.

"There have never been so many motivating factors in play at once," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "We're in for a heated Spring market that will, in all probability, spill over into the summer months as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."

While buyers are taking advantage of favourable conditions, sellers too are reaping the rewards. Competing bids are a factor in the marketplace once again, with well-priced listings-especially at the entry-level price point-experiencing multiple offers. Properties priced at fair-market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board - and it's not likely to subside unless more inventory comes on-stream.

"The level of frustration is growing, as pent-up demand builds," says Polzler. "For every successful offer, there are those that will walk away empty-handed. They're thrust back into the buyer pool and the process starts all over again. Some buyers are upping the ante, while others are considering alternate housing options. Still, purchasers remain cautious in their bids, with most careful not to max out debt service ratios."

Recent revisions to lending criteria will add fuel to the fire in the short term. Buyers considering a variable rate mortgage will step up their plans for homeownership in the next month or so just to get in under the wire. In the longer term, buyers will adjust, but move forward. Compromise has long been a reality-particularly in the larger centres. This simply means they may go smaller or further in their pursuits.

"It's been a 180 degree turnaround from this time last year," says Ash. "It's clear that real estate from coast to coast has roared back to life and markets are once again firing on all cylinders. The vast majority of markets are now recovered and fully-evolved, with all segments working in tandem. At the luxury price point, activity was brisk in seventy-three per cent of centres surveyed, with momentum ramping up in the remainder. Opportunity exists in some areas, but the question is for how much longer?"
V841810 - 1951 CREELMAN AV, Vancouver, BC, CANADAView my new 1/2 Duplex for sale at 1951 CREELMAN AV, Vancouver and currently listed at $1,239,000.

Kits Point! This totally renovated contemporary 1/2 duplex has it all. Some of the updates include Euro tilt and turn windows, new kitchen and bathrooms with quartz countertops, stainless appliances, 2 stage air filtration system, fir floors throughout and the list goes on. The building has just been painted, has a 5 year old cedar roof and all new decks for this unit. The suite features 2 large decks, a cedar patio, attached garage, huge open kitchen, a 255sqft loft with mountain views and a wood burning fireplace. This home is perfect for entertaining and not one to miss. See realtors website for 360 tours and floorplan.

See the Pixilink 360° Virtual Tour for this 1/2 Duplex

Posted: 12-07-2010 under New Listings
V840444 - # 235 2565 W BROADWAY BB, Vancouver, BC, CANADAView my new Townhouse for sale at # 235 2565 W BROADWAY BB, Vancouver and currently listed at $489,000.

Quiet 2 bedroom T/H (back of project) has peaceful mountain outlook, front and rear patio access. The home has been well maintained and feature open plan, 3pc bathroom on the main and much more. This building was completely rainscreened in 2003 and still has 3 years left on the 10 years warranty. The location is prime with a wide selection of restaurants, transit, banking, shopping, parks and Kitsilano beach - all within walking distance. Extras include 130 SF, fenced patio at rear, small patio at front, storage locker and parking stall. Open Houses Sat/Sun July 24/25 from 2-4pm. See realtors website for 360 tours and floorplan.

See the Pixilink 360° Virtual Tour for this Townhouse

Posted: 05-07-2010 under New Listings
V840864 - 6681 PRENTER ST, Burnaby, BC, CANADAView my new Townhouse for sale at 6681 PRENTER ST, Burnaby and currently listed at $432,900.

This is a HOME! 3 bdrms and a 5pce 'cheater' ensuite bath upstairs, a generous kitchen, a dining area, a large living room w/ gas f/plce and a powder room on the main floor, a 2 car garage (tandem), tons of storage, and a private yard for rover and bbq's off the kitchen... a house? Close enough! Fantastic townhome value in a gorgeous treed, family oriented, super-conveniently located (2min walk to skytrain) area in sunny south Burnaby. 3 levels w/ huge garage and storage, tons of privacy on a quiet cul-de-sac in a very reputable, well-built complex, the "Berkeley". OPEN HOUSE Sat July 17 CANCELLED. See realtors website for 360 tours and floorplan.

Posted: 05-07-2010 under New Listings