The Vancouver Sun launches their new UDI/Fortis BC Housing Affordability Index

(Newswire.net — Feb 15, 2013) Vancouver, British Columbia — On Friday, Feb 15, The Vancouver Sun announced the launch of their new UDI/FortisBC Housing Affordability Index, and it clearly showed that in the Inner Metro area, there was little sales activity. Poorer sales activity in this region, according to Richard Morrison of the Richard Morrison real estate team, is the result of low home prices and especially, North Vancouver real estate prices dropping far below their normal range in recent times.

And Morrison fully agrees with the UDI/FortisBC Housing Affordability Index’s way of looking at housing prices. A report of the index, which is developed by a partnership of the Urban Development Institute, Urban Analytics Inc., and The Vancouver Sun can be found here (http://www.scribd.com/doc/125557768/Housing-Affordability-Metro-Vancouver). According to the UDI/FortisBC Affordability Index, “Inner Metro” consists of West Vancouver, North Vancouver real estate, Burnaby, New Westminster, Richmond, South Delta, Coquitlam, Port Moody and Port Coquitlam.

However, the index shows, that in the Inner-Metro area the affordability index for new concrete condominiums was 51.7%, while in Vancouver proper it was less than 32%. In cases, where only 10 per cent down payment was required, Vancouver showed an affordability index of only 48.8%, while the Inner Metro region stood at 63.3 per cent. Richard Morrison, being a veteran of the Vancouver real estate market commented late Friday that the new Affordability Index published by The Vancouver Sun, was closer to the truth than most such indexes. To stress his point, Mr. Morrison said, “For example, for months I had been stressing to my clients that North Vancouver real estate prices are dropping and this is the time to go for that condominium or town home you had in mind, and now this Affordability Index proves what I had been telling investors.”

Morrison agreed with the comments of Anne McMullin, president and CEO of the Urban Development Institute, who told The Vancouver Sun, (http://www.vancouversun.com/business/affordability/What+afford+housing+affordability+index+shows/7967396/story.html) about the index that it gave “us a different read and drills down a bit more to have a better understanding of what affordability is really like in the region.” The new index takes into account factors like prices, income, assumed down payments, and also assumes that a person can reserve a maximum of 32% of his/her gross family income towards mortgage payments. And that transportation costs also need to be taken into account while calculating affordability.

That, said Morrison, is the actual way to approach Vancouver real estate deals when you offer property to investors or home buyers. He said, “When my team or I offer real estate deals to buyers, we do not offer only that seems cheapest by price, but also take into account the income, the place of work and associated transportation costs, and livability of properties before offering them.That North Vancouver real estate prices have been dropping does not mean we are keen on making as many sales as possible, but we are keen on creating satisfied clients who would be happy with good deals in North Vancouver.”

Richard Morrison is a REMAX agent operating out of Vancouver, British Columbia, Canada. His team consists of 5 expert agents, with a combined experience of over 40 years.

Richard Morrison Personal Real Estate Corporation
http://www.realestatevancouver2010.com/homes/west-vancouver-homes/
Address: 208 – 789 Drake Street, Vancouver, BC, Canada, V6Z 2N7
Tel: 1.(604).767.3703