Real Estate

Vancouver housing bubble?

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  • Mar 26th, 2024 5:10 pm
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Deal Addict
Dec 5, 2009
2789 posts
3289 upvotes
It's not much of a scandal... He's tring to find "clear criminal links" and that may be very difficult to do... these criminals aren't your standard B&E idiots. It's very possible that everything that he's said (and others, ie. all of the reports from other casino or banking employees) is true, but it will be very difficult to prosecute.
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
Alpine84 wrote: It's not much of a scandal... He's tring to find "clear criminal links" and that may be very difficult to do... these criminals aren't your standard B&E idiots. It's very possible that everything that he's said (and others, ie. all of the reports from other casino or banking employees) is true, but it will be very difficult to prosecute.
I didn't say that it was a scandal... I said that they need to a better job before dragging someone's name through the mud especially if it only takes less than A DAY to find out the government was WRONG. We are dealing with people's lives and reputations here so the government should take at least a little care before making these types of announcements.
Banned
Jan 23, 2016
1430 posts
408 upvotes
Kitchener, ON
craftsman wrote: The last point is actually supported by the recent numbers published about the increasing numbers in BC who are financial distress -> up 5+% over the previous year for April if I remember correctly - and that's with an economy doing relatively well. I would hate to think what's happening to those with reverse mortgages and got them at the height of the market (ie. those $3.5 million homes which are now worth $2.5 million...)... what type of squeeze is happening there. And of course, it's property tax season so people are getting their invoices which may just add to the financial pressures.
Don’t need to look further then debt to income. Canada is at $1.80/$1 today. US was at $1,30/$1 when theirs kicked off.
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Deal Addict
User avatar
Jul 8, 2010
1459 posts
1176 upvotes
Ontario
Sparky9087 wrote: Don’t need to look further then debt to income. Canada is at $1.80/$1 today. US was at $1,30/$1 when theirs kicked off.
This does not matter, everyone knows that Canada is special. Just think about all those 400k+ immigrants that come to Canada each year and they need to buy RE....
Banned
Jan 23, 2016
1430 posts
408 upvotes
Kitchener, ON
Isostar wrote: This does not matter, everyone knows that Canada is special. Just think about all those 400k+ immigrants that come to Canada each year and they need to buy RE....
If you believe the bulls here they are only a small fraction of the buyers.
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Deal Addict
Apr 10, 2011
3914 posts
4767 upvotes
Canada
"Foreign money still driving B.C. housing market despite ownership data"
Vancouver City News
June 11, 2019

The latest numbers from Statistics Canada only look at someone's residency, not where the money to buy it came from.

Of the 2,156,920 residential properties in B.C, 5.5 per cent were owned by foreign individuals or foreign non-individuals such as non-individual a corporation, trust or state-owned entity, according to the Canadian Housing Statistics Program from Statistics Canada.

Josh Gordon with the Simon Fraser University School of Public Policy says the study only looks at someone’s residency, not where they got the money to buy the property.

Just because there are a lot of domestic speculations does not change the fact that the overall market is being driven by the impact of outside money.

https://www.citynews1130.com/2019/06/11 ... ign-money/
Last edited by RxMills on Jun 12th, 2019 1:39 pm, edited 1 time in total.
Deal Addict
Apr 10, 2011
3914 posts
4767 upvotes
Canada
"Expert who predicted Vancouver housing price drop now expects condos to flood market"
Vancouver City News
June 5, 2019

"We’re going lower, longer. By middle of 2020, average sale prices should be right around $1.4 million for the detached market, signalling a 20 to 24 per cent [drop]. There’s some factors that could maybe cause the detached market to go even lower.”

“[This] basically creates an environment where the inventory can continue to build up, thus causing more competition for the sellers,” he says.

“You’re going to see the cannibalization of the condo market where there’s a flood of new, built properties available to move in today and they’re going to be at relatively attractive prices.”

Eitel also says developers will have to get more competitive.

There’s going to be a flood of inventory that comes up that no one’s really anticipating, which is all those investors that bought five and six properties are just going to walk away, simply walk away from their 15 per cent deposit, 20 per cent deposit.

There’s going to be an absolute ton of inventory available.”

https://www.citynews1130.com/2019/06/05 ... od-market/
Banned
User avatar
May 15, 2016
7020 posts
2490 upvotes
RxMills wrote: "Expert who predicted Vancouver housing price drop now expects condos to flood market"
Vancouver City News
June 5, 2019

"We’re going lower, longer. By middle of 2020, average sale prices should be right around $1.4 million for the detached market, signalling a 20 to 24 per cent [drop]. There’s some factors that could maybe cause the detached market to go even lower.”

“[This] basically creates an environment where the inventory can continue to build up, thus causing more competition for the sellers,” he says.

“You’re going to see the cannibalization of the condo market where there’s a flood of new, built properties available to move in today and they’re going to be at relatively attractive prices.”

Eitel also says developers will have to get more competitive.

There’s going to be a flood of inventory that comes up that no one’s really anticipating, which is all those investors that bought five and six properties are just going to walk away, simply walk away from their 15 per cent deposit, 20 per cent deposit.

There’s going to be an absolute ton of inventory available.”

https://www.citynews1130.com/2019/06/05 ... od-market/
Haven't really followed the thread but has prices really fallen 20% to justify walking away from their purchase?
Deal Addict
User avatar
Dec 14, 2007
3105 posts
1530 upvotes
vivibaby wrote: Haven't really followed the thread but has prices really fallen 20% to justify walking away from their purchase?
Even "IF" there are 20% drops, people typically don't just walk away from the purchase. They just hold on For three years, four years, five years, or however long it takes for them to feel better about themselves when they finally sell at a "profit", not taking into account opportunity cost and other elements. There will be no mass sell-off.... just a slowwwwww erosion of equity.

Remember, real estate is essentially an inverted roller-coaster. Instead of a slow climb and a precipitous drop, it's a precipitous climb and a slow anti-climactic coast.
I'd love to write history... in advance.
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Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
atomiton wrote: Even "IF" there are 20% drops, people typically don't just walk away from the purchase. They just hold on For three years, four years, five years, or however long it takes for them to feel better about themselves when they finally sell at a "profit", not taking into account opportunity cost and other elements. There will be no mass sell-off.... just a slowwwwww erosion of equity.

Remember, real estate is essentially an inverted roller-coaster. Instead of a slow climb and a precipitous drop, it's a precipitous climb and a slow anti-climactic coast.
Let them dream I guess.
Deal Addict
Aug 21, 2007
4878 posts
457 upvotes
gave up on rfd for g…
What is somewhat ironic is that people still do not think there is the same issue with money laundering here in Toronto in the real estate market or yer worse, those who think Vancouver is leveling off.
Left rfd
Deal Addict
Dec 4, 2016
2011 posts
1030 upvotes
Alpine84 wrote: It's not much of a scandal... He's tring to find "clear criminal links" and that may be very difficult to do... these criminals aren't your standard B&E idiots. It's very possible that everything that he's said (and others, ie. all of the reports from other casino or banking employees) is true, but it will be very difficult to prosecute.
Compare this case to the Mark Norman case, which one is more of a scandal?
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
mkjr wrote: What is somewhat ironic is that people still do not think there is the same issue with money laundering here in Toronto in the real estate market or yer worse, those who think Vancouver is leveling off.
In any market that 'suddenly' increases over historical norms with any 'one' thing that can account for it (ie like a major local development like LNG in Northern BC), there's probably some level of illegal activities going on... I suspect that money is being laundered in Montreal and Ottawa as well.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
mkjr wrote: What is somewhat ironic is that people still do not think there is the same issue with money laundering here in Toronto in the real estate market or yer worse, those who think Vancouver is leveling off.
There is money laundering here but it’s not blown out of proportion with people acting like that is the biggest reason why prices have escalated.

Money laundering is nothing new not is illegal activity with regards to money but we all know why it’s being turned into such a huge issue now. We know.
Deal Addict
Mar 7, 2011
3744 posts
1986 upvotes
Vancouver
JayLove06 wrote: Money laundering is nothing new not is illegal activity with regards to money
Huh ?!? Is the weed too strong for you?
JayLove06 wrote: but we all know why it’s being turned into such a huge issue now. We know.
Who's "we" ?
Member
Jul 25, 2008
400 posts
274 upvotes
ottawa
I just don't see what the harm is in cracking down in money laundering in real estate is if the BC government is wrong? For the average buyer, it's just one or two more forms to fill out. Unless the BC government is right and there is lots of criminal activity in the housing market, there should be no effect on prices (and if we're lucky, a few crooks get caught).
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
charlesd79 wrote: Huh ?!? Is the weed too strong for you?

Who's "we" ?
It's called shitty apple predictive text

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