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An article on Vancity Buzz states that the Vancouver housing market has been “crazy” for a while now, “however, this takes crazy to a whole new level, as an East Vancouver basement suite near Kingsway & Knight (not exactly a quiet intersection) has sold for approximately $590,000.”

On a 33 x 120 lot, the owner is listing the main floor home for $1.2 million, and the basement suite for $590,000. The interior finishings for both units are top-notch, with the newest flooring and appliances, as well as materials in the bathrooms.

This triggers the voice of many homeowners and housing market economists to emphasize on the surrealism of the market right now in Vancouver. A lot in the busiest intersections of eastside Vancouver can sell for over a million dollars, experts only see the trend going worse from here.

The original article and photo credits belong to Vancity Buzz: http://www.vancitybuzz.com/2012/02/east-vancouver-basement-suite-sold-for-590000/

I was walking up West 16th Avenue one sunny afternoon (props to Spring!) last week, when I encountered a row of heritage homes in the 400 block, just before Cambie Street.

I did some research on it. What I found is that these homes are a series called Heritage, a collection of 16 craftman style half duplex homes, each at around 1400-1500 square feet. My research also tells me that these homes are worth around $849,000 in 2009 when they were built. The current market value for these homes are around $1.2 million.

Coming across some search results on the MLS website (some of these homes are on the market currently), the interiors are done quite practically. Open kitchen, linear dining and living area, 2 bedrooms on the second floor with full bathrooms. Pleasantly, a good space for a family of 3 to 4.

Furthering my research on the insights of these half-lot homes, I interviewed financial advisor Candice Wong of Freedom 55 Financial Group. “The price for the home is very affordable for the working middle class of Vancouver right now. Good neighbourhood and good purchase for a long-term purpose for a small family. However, I do not suggest this purpose for investment purposes.” Candice sees the housing economy at it’s highs right now, a purchase of a small house for $1.2m does not benefit the owner of the house investment-wise.

Some realtors comment on this differently. This is a hot neighbourhood in the area right now because of the convenience, lifestyle and transportation. Being very close to Capers, bakeries, and many neighbourhood restaurants, this block is also close to bus stops and the Broadway Cityhall skytrain station. With the ever-rising prices of the Vancouver housing market, not only homes are going up in prices, but sizes of homes go up as well due to all the bigger lots in Vancouver and maximizing of the lot space. For homeowners who are looking for a smaller and cozier home, it almost seems impossible unless they shop further east in Vancouver where lots are comparably smaller. The Heritage collection homes offer a smaller house on a westside neighbourhood, without compromising style in architectural and interior design.

Duplexes and divided lots are becoming more and more popular to suit the buyers’ needs. There are pros and cons to a half duplex. Also considering that the lot itself is under shared strata policies, and the prices of one unit is way more than what half of that lot of worth.

What are your thoughts, homeowners?

Most of local Vancouver residents feel that residential property prices have been stressfully high in the previous year. A lot of Vancourites are moving out of the city to the suburbs to settle for a home that they can afford.

However, the experts feel that the Vancouver housing market is reasonable in the bigger picture of the Canadian housing market since the later half of 2011.

On the pricing and affordability of a home, there is the market value of the property itself, and then there is the costs for the homeowner and the household budget, being the core problem of the the “unaffordability” of a home in greater Vancouver area.

According to the RBC Chief Economist Craig Wright, ”At this point, housing in Canada is essentially as affordable as it was a year ago, and only slightly less affordable on average than it has been over the long term. All things considered, the housing market is sitting in a reasonably balanced position overall, despite some minor stress being exerted on housing demand.”

The truth is, affordability in Vancouver is improving. Of course most of us know the expenses of living here in the beautiful city, but according to housing trends, it is inevitable that prices are at what they’re at now. Although we are the least affordable in Canada, it is evident that job opportunities and incomes are rising.

Here are the insights for the housing market in other cities of Canada from RBC Economics: http://www.newswire.ca/en/story/933423/housing-affordability-improves-for-second-consecutive-quarter-rbc-economics

Most of us must’ve noticed the spacious and dominant retail space in the CTV Building where HMV used to be on the corner of Robson Street and Burrard Street. CTV has recently reported that decision is underway, surely there will be a worthy retailer going into that space. The space is 3-storey high with a total square-footage of 50,000sf. It is expected that a BIG name is making its mark at this location.

Another location in the area is the Robson Optical Building on the corner of Robson Street and Granville Street. With the Future Shop giant screen on the other corner diagonally across from this vacant location, an application for a rebuilt has been submitted for a 2-storey retail plus 3-storey office space building, and  is under review. There is no need to advertise or attract businesses to this location, as it is one of the most vibrant and busy intersections of downtown Vancouver. One of the candidates that’s rumored to desire the location is Apple, making this location its flagship store in Vancouver.

Sears at Pacific Centre has just announced that it will be closing on October 31st, 2012, along with its Calgary Chinook Centre store and the Ottawa Rideau Centre store. At the intersection of Robson and Howe Street, this 500,000sf space is already attracting big departments stores across the border such as JC Penny, Macy’s, and Nordstrom.

There are also changes that we already see. One of them is Forever 21, opening its first downtown location on Robson Street between Burrard and Thurlow, alongside some of the luxury brands also in the core of the shopping district.

With the changes on their ways, some Vancourites are devastated as the closures may be some of their favourite retailers. However, it is exciting to see what these new developments and big brands will bring to the heart of the city’s retail zones. As Vancouver brands itself to be the most desirable city to live in, the retail district is surely to reflect the culture and prosperity.