eS ROME Fe eS Se tou Ay by Tod Strachan During the week of May 21 Terrace city council received a copy of the proceedings of The Northwest Housing Forum held in Terrace in April of this year. It was ironic, remarked one city alderman, that we have received this document with lavish praise and in the same breath turned down a zoning change that would have provided some much-needed rental units, Terrace council will be taking a close look at the report, however. It has been referred to their For- estry, Housing and Seniors Ser- vices Committee to determine the viability of establishing a housing commission here. Of prime inter- est, of course, is how to deal with a shortage of housing, a shortage illustrated by Canada Mortgage and Housing Corporation rental market survey reporis. In the fall of 1990, CMHC listed vacancy rates of 17.5 percent for Kitimat, 4.4 percent for Prince Rupert and only 0.6 percent for Terrace. The figures were based on 522 apartment units in Terrace and only four vacancies and 106 row houses with zero vacancies, for a grand total of 628 rental units and only four vacancies. Prince Rupert lists 930 apartments with 42 vacancies and 103 row houses with two vacancies for a total of 1,033 units with 44 vacancies. And the report for Kitimat lists 654 suites with 84 vacancies and 186 row houses with 63 vacancies for a total of 840 units with 147 vacancies. Rental units, of course, are only a part of the housing picture. The supply of appropriate single family homes and appropriately zoned land for new construction is also an important issue, But in the minds of many Terrace officials, the rental shortage is a serious problem. A company or industry moving into the Northwest might find Kitimat more attractive because housing is available for their employees. And that means Kitimat could reap the benefits of our efforts in promoting economic growth in Terrace. In recent months the Terrace Review has covered much of the material offered at the housing forum. David Lane provided "Demographics and Future Demand for Housing”. The needs of the disabled were summarized by Canadian Paraplegic Associ- ation representative Marg Skead. The players in creating new hous- ing, their roles and their views, coveted (he perspectives of cily A PLACE &( TO LIVE The housing crisis in greater Terrace planner Marvin Kamenz, building inspector and former developer Bob Lafleur, Kitimat realtor Dwain McColl, and Ed Opal of Smithers who represented the Ministry of Crown Lands. In this series of articles we offer views from another segment of the forum: "The Future of Housing in Northwestern B.C." This session featured Gordon Sheridan of the Northwest Real Estate Board, CMHC regional manager George Fessenden of Prince George, Ray Jones and Steve Bolton who talked about native housing, and Danny Sheridan who offered insight into non-profit and seniors housing. First, Gordon Sheridan. Single family dwellings was Sheridan’s topic, and he said the demand for single family homes in the Northwest will continue, but added that the success of his pre- diction is based on the assumption there will be a continuing supply of affordable land. Where there is a demand, but a shortage of land, the demand surpasses the supply, and that inflates the value of avail- able land. With this scenario, fewer people can afford to own their own homes. According to Sheridan, "Obviously you will see more multi-family units, strata com- plexes and cooperative housing." The law of supply and demand is not a problem in the Northwest, however. In fact it’s something that is working, and will continue to work in our favour. According to Sheridan: “This is why this area will continue to grow and develop. Take, for example, a young couple in Vancouver, say with one child. They-are most likely renting an — apartment for $800 or more a month. If they were to consider transferring to this area they would be looking at probably a ‘three- bedroom, full-basement home ina good area, a decent sized lot, and an opportunity to raise their family in a beautiful setting and clean environment. Basically, what I am saying is that they have a great opportunity to provide a future for themselves and their family." With this reasoning in mind, says Sheridan, we will probably see more people migrating from the south for many years to come, a future we must begin planning for. Our plan, says Sheridan, must be flexible. Everyone must understand and agree that our plan is only based on our experiences of yester- day and today and our vision of what might happen tomorrow. And with that understanding, as history unfolds and reality replaces our vision, we must be flexible. We must be willing to adjust our plan accordingly. Sheridan then moved away from this overview of our potential in the. Northwest and the need for good community planning by look- ing within the community itself. This migration from the south also affects the lifestyle of the individ- Gordon Sheridan: Obviously, units, strata complexes and cooperative housing. Terrace Review — Wednesday, July 3, 1991 A9 The demand for single-family, detached housing is forecasted to continue in Terrace, but the supply will depend on the availability of affordable land. few things you should do to maxi- mize its market value. Painting is one of the best things you can do but be sure to stick with neutral colours. You might consider a little carpet but first carefully calculate any gain in value and compare it to the expense of the upgrade. A realtor can help you decide. In general, you want your home to be neat, clean... something that feels comfortable. Nice furniture adds a great deal to this feeling of _ comfort or liveability. Now might be the right time to think of new furnishings for your next home. With the selling of your present home, you also have to consider the purchase of your next. And if you’ve been there before, you can appreciate these words of warning you will see more multi-family ual family unit. From a housing perspective, for example, there is an increased opportunity to sell that first smaller home, but more compctition in buying something larger. Sheridan, therefore, offered some tips on buying and selling a home. ; If you’re selling, says Sheridan, you shouldn’t simply set a price and hope someone will walk through the door and say, "Yes." Your price might be too low and, while the home might sell fast, you won't have your fair equity in your second home. And if the price is too high, of course, it will take a long time to sell if it sells at all. Instead, suggests Sheridan, have a res] estate professional or an appraiser determine the correct value under the present market conditions. How do you select a realtor? In asmaller town, word of mouth can be a good guide. Ask friends, employers and business associates. You want a successful realtor with a knowledge of local market con- ditions and a good track record. You want to know what services they provide. Will they follow up with local banks and conveyancers lo ensure a smooth transaction? Before you have your home appraised, however, there are a from Sheridan: "In no other area of real estate will you get more free advice. Be it your family, friends, boss, neighbour, store clerk, everyone will offer free advice when you don’t want it. Everyone will tell you how to buy a house." The message here: be polite to family and friends, listen to the real estate professional. "But real- tors always inflate the value by 10, 15, 20, 25 percent," you will be lold. Not true, says Sheridan: "Owners set the listing price. The realtor advises through cither ap- praisal or market evaluation result." But, he adds, “Some overpriced listings do occur even when advised properly." How can you be sure the home you are considering is not overpriced? "Insist your realtor shows you not only homes for sale, but also drives by or supplies information on homes that have recently sold in the area and price fange that you are looking ai," says Sheridan. This way, you have a much better idea of a reasonable price for the type of home you are looking for. Then, when you make an offer on a home, don’t make it so low as to insult the owner. Offer the asking price or an amount that is reasonavle and negotiable. And here is another valuable hint from. Sheridan: "Go to your local ‘bank and arrange a pre-approved mortgage certificate or a letter of intent. Have your realtor photo- copy this and attach to an offer when you find the right home. Chances are, if it’s a good deal, there might be someone clse put- ting an offer in at the same time. A pre-approved mortgage certifi- cate will give your offer a lot of credibility." Sheridan then addressed the role of the builder in the scenario, the person in this cycle of buying, selling and upgrading lifestyles who provides new housing of a design and price range that is based on what is required. Here, Sheridan wasn’t talking about custom built homes, but homes built on speculation for sale to the general public. There are several strategies the builder can use. He can pick the design, the lot and finishing materials like siding and caspet, build the home, advertise, show it to potential buyers, negotiate a deal, and sell it. This might sound good, says Sheridan, but there is a better way. The builder could go through all the initial steps of designing and building a home, and then contact a realtor to adver- tise, show, negotiate and sell. But even this method has it’s downside, and Sheridan suggests there is a better strategy that is Starting to be used and can and should be developed in a big way. Sheridan describes it in this way: "The builder picks a realtor. The builder and realtor work together from the ground up. They try to larget the home for a certain price range. The realtor advises on what buyers want in a new home, in what area, coordinating colour schemes, etc." Sheridan says this has been a very successful strategy, and some housing built with this realtor/- builder cooperation have actually been presold. "It’s an effective way of marketing spec homes,” Sheri- dan said during his address at the forum. "And it is an area where builders and realtors should be working together to provide a better service for the public. This is what this Housing Forum is all about. To provide better service to the public whenever their needs arise in the community. "Coordinate the planning and ideas, bring the people together, and each of us, in our own particu- lar areas, will benefit through this, and in turn benefit our communi- ties, the people living here raising their families, the people hoping to move here because they have heard good, positive feedback about our community."