This HGTV show is a perfect eye opener if you want to compare prices of real estate all over the world. You can get “bargains” or -should I say - houses that don’t cost you much, in many tropical paradises. However, when you look at certain sought after areas the prices resemble our often called “buble” prices in Vancouver. Yesterday I watched with interest a San Diego couple look at houses in the Amalfi Coast of Italy - my favourite place on earth. I was anxious to see what you pay for a villa with that signature Med view near Positano. It was like a comedy show. Domenico the sleak “italiano” realtor was showing ruins to this stunned California couple. “So where is the plumbing?” asked the pretty California wife. “The plumbing? There is no plumbing. You get your own plumbing”. The ruins dated from the middle ages, so there was no plumbing (as in no kitchen, no bathrooms) no electricity, and access was along about 1000 steps.”How do you take supplies up?” “Oh you get the mules ” says Domenico. Mules? Yes - donkeys. Charming. They bought it. Only $735,000 US….

Real Estate market analysts say that the slow down is due to the HST. Buyers should be aware that HST only applies to NEW construction,
just like the GST did before July 1st. Many developers are offering to pay the new tax so the impact is nill. Sellers will pay HST only on the fees payable to realtors and lawyers. Perception, sentiment, media drama are the real reasons for the slow down. Variable rates are at 2%. I would say it is time to go out and carefully pick deals. There are over 500 detached homes for sale in West Van and the fact is - the media drama helps buyers. Sellers become more vulnerable and willing to take low offers.

I’m reading “Blackberry - The Inside Story of RIM” . I never cease to admire people who have a vision and the passion to turn it into reality. What would we do without our blackberry’s! Then you get these Arab states and others worried about not being able to monitor what is being said by the users in their countries. That makes me like RIM even better. With their own servers, messages don’t go through
the unknown cyberspace of the internet. That is the reason Obama has a blackberry, not an iphone. Most corporate smart phones are blackberry.

Today Shirley Clarke died (Shirley Clarke with Re/Max in North Van not to be confused with Shirley Clarke with Prudential in West Van). I talked to Shirley in March for what I now know was the last time. She called to make an appointment for her daughter to show one of my listings. I don’t think I even asked “how are you?” We “top” realtors never do. It’s just straight to the point.
I did wonder why she was doing the assistant job, calling to make an appointment for her daughter. But didn’t ask. She might not have answered. It was too sad. She had been terminally ill for 2 years and I didn’t know. She did an amazing job in her short 13 years in real estate. She created a power house from the first year, and quickly evolved to employ her husband, then her son Jordan, then her daughters. Earlier this year she re-branded her business from focusing on her to becoming Team Clarke. I thought she was preparing for early retirement (she was in her 50’s) but she was doing way more. Today I understood. She had created a hugely successful business for her family. A valuable asset that had to survive her. She did an amazing job. I’m sorry we never “had time” to talk …Well done, Shirley!

One of the great advantages of this business is the friendship that grows with clients and colleagues. One of my first clients back in 1986 was the Ashby family. Their son Michael was 6 and their daughter Laura was 4. Michael is now 30 and a successful hedge fund manager in Geneva. I was fortunate to be one of only 80 people invited to his wedding in Ravello, Amalfi Coast, Italy. What an amazingly beautiful experience.
On the way over we stopped in London, as usual. Their HST (VAT) had just been increased to 20% that day. I didn’t check what it was in Italy. But I checked in Portugal, where we spent 5 days before flying back. It was just increased to 21%. They are doing their best to balance their budget - and in the case of Portugal - to pay back their huge debt to the EU. It helps put our 12% HST in perspective…we want good health care, schools, parks, roads, bridges - it does have to come from somewhere…One good surprise - tax wise - when I ordered my new Jag yesterday it was cheaper than the quote I had in June. The 3% luxury tax is quietly gone…

Associated Realty of the Americas(AREA) is a new concept in real estate marketing and networking. Founded in Arizona, the company selects top realtors in major urban and resort areas with the goal of marketing their listings to all. What makes it unique is that they market to the people who represent buyers, not to the buyers themselves. They selected me for Vancouver and I was happy to join. In addition to a mega network of over 100,000 realtors that Re/Max offers to me, I now have a more boutique selection of pre-screened top realtors who make a point of keeping in touch and highlight the listings of the group. Some are with Re/Max as well, some not. It’s just a more hands on approach to the referral process.
And even more exposure to my listings!

26 years ago, when we moved to Canada, our first house had a kidney shaped pool with a diving board, a family room with wet bar and shag carpet all over - different colours for each room. Coming from Brazil, we were used to bright and airy so the carpets were replaced with pastel colour all over. Later I remembered seeing hardwood when the carpets were removed, so the next change was to remove the carpets and expose the hardwood that hadn’t seen the light of day in years. Yesterday my daughetr went to a party at a house that she said reminded her of our old house - wet bar, big hot tub, the old party style. Which reminded me of the changes in buyers “wants list” over the years. Right now it’s hardwood all over, large kitchen islands, open plans where the kitchen and family room are integrated, outdoor kitchens and outdoor entertainment heated spaces, creative fireplaces - indoor and outdoor. The pools are usually rectangular and the diving boards have been ditched. Hot tubs are not a decisive point. Some people hate them and if they come with the house, they will be the first thing tossed out the door. Others still like them, but not for parties, just for their own use. Unless they are at Whistler. Wine cellars were the big thing about 5 years ago…not so much right now. I’ve been selling houses with beautiful wine cellars - no wine… Home theaters are still a must…

“Nationwide housing reached for the 5th consecutive quarter the highest level of affordability in 20 years” The National Association of Home Builders/Housing Opportunity Index (HOI) states that “this report is very encouraging because it indicates that home ownership remains within reach of more households that it has for more than 20 years” This is not about some remote undeveloped country. It is the US!!! Talk about a positive spin on a dismal real estate matket. The report goes on to mention the most affordable markets, we know - the ones that lost the most manufacturing jobs or were highly overbuilt - and the least affordable, like New York and California. I just had to smile at the use of the word encouraging and highest level of affordability. It’s great when the media finds positive ways of reporting negative facts.
I’m happy to report that Vancouver continues to rank amongst the most unaffordable cities in the World. Meaning one of the most desirable.

I’m sure we all wish markets just went up and up, like when I started selling real estate in 1986. My buyers were happy, the sellers were happy too, because they bought more suitable properties that also kept going up in value. Then we had the 90’s, GST and stock market collapses. Ups and downs, people selling for less than what they paid - but again it’s all timing. It was the “lost decade” for real estate.In 2000 with the dot com bubble we were all wondering if it was too late to buy real estate - prices seemed so high. In fact they did go down a little, but in 2003 I knew we were in for a good run. I did buy some properties myself. Prices basically doubled in a short 4 year period
In May of 2008 the number of listings doubled all over Vancouver, the Board had to hire temps to keep up with the input of listings until 10 pm every day. By August the stock market had followed and real estate froze. Nobody knew what anything was worth because there were no sales.We kept listing at the old values, then a little less, then 20% less. Finally around mid 2009 buyers were taking advantage of bargains, prices stabilized. However, those who bought in 2007 and sold before November 2009 invariably lost money. I never hear people blaming their stockbrokers for the ups and downs in the financial markets, yet occasionally I hear people blaming their realtors for selling low…Or resenting them. It’s not a happy situation for anybody involved including realtors. Our costs are higher because of increased advertising costs during much longer listing periods. Many times when we get paid most or all of our fees are gone - to glossy magazines, real estate papers, multiple web sites, web master, photographer, measure masters, assistants, Board fees, office fees, broker fees, accountant fees, it’s never ending. One of my clients just got her license and joined my office. After 2 months she called me and said “I have a new respect for what you do - I’m so sorry I ever discussed your fees …this business is just pay pay pay”.
It is, yet all SOME sellers see in the end, especially in a down market, is the fees. By the way our real estate fees in Vancouver are the lowest in North America! People pay double back East and in the US. Ever watched HGTV? I have to smile when people say proudly that they got their realtor to reduce the fees from 6% to 5%. And the realtors complaining that after paying the buyers agent’s fees they got nothing! I’m so sorry for them - we charge waaay less and pay 46% to the buyers agent!

I’ve said many times - forecasts are unreliable. Just watch BNN for 1/2 an hour - you will hear predictions of the Dow at 3500 by the end of the year and next someone else talking about the positive signs of recovery. The other day I heard a financial adviser remind us that there are 2 kinds of forecasters - those who don’t know and those who don’t know they don’t know. True. This is why I just mention the facts - higher and higher number of listings . Slower number of sales. On the flip side more and more offshore buyers bringing gigantic amounts of cash into the country. I heard at an agents open the other day about a man from Iran depositing 375 million euros into a local bank last week. Many of the showings on my listings are done to buyers on short buying trips, coming from Toronto, the US, Europe and above all - Mainland China and
Iran. That has to be positive…