Real Estate

Vancouver housing bubble?

  • Last Updated:
  • Dec 4th, 2019 4:30 pm
Tags:
None
Deal Addict
May 22, 2003
3871 posts
1621 upvotes
Vancouver
civiclease wrote:
Apr 14th, 2019 8:50 pm
Yes and as bad as detacheds look, the biggest declines happening right now are actually condos. After a couple years of stubborn sellers, prices are now FINALLY starting to fall off a cliff.

Vancouver and Richmond condo prices -20% yoy according to Zolo (month ending April 11).
Burnaby condo prices -10% yoy.
West Vancouver has 117 condos as active listings and 0 (zero!) sales in the past month.
https://betterdwelling.com/city/vancouv ... 31-higher/#_

https://www.vancourier.com/real-estate/ ... 1.23669310
Deal Fanatic
Feb 29, 2008
8858 posts
3965 upvotes
The funny part is people really think condos are going to fall off the map. Condos will continue to be popular. You're not building houses in urban centers. Prices will go right back up.
Sr. Member
Aug 3, 2006
622 posts
404 upvotes
JayLove06 wrote:
Apr 17th, 2019 7:30 pm
The funny part is people really think condos are going to fall off the map. Condos will continue to be popular. You're not building houses in urban centers. Prices will go right back up.
Condos are not that popular at the moment just look at the huge glut of supply on the market not to mention the fire sale on assignments since people don't have the ability to close.
Deal Fanatic
Feb 29, 2008
8858 posts
3965 upvotes
datoprookie wrote:
Apr 17th, 2019 10:25 pm
Condos are not that popular at the moment just look at the huge glut of supply on the market not to mention the fire sale on assignments since people don't have the ability to close.
Dude, condos will forever be popular in high density locations. Go to an urban center of any world class city, you will see nothing but condos being built. They aren't building houses downtown, man. It's all about vertical living. Houses will always be highly desirable, but they are being built outside of the downtown core. Unless you have a small fortune you're not buying a house downtown.

I don't even see how this can be debated. High density = condos. Housing grows upward as the land is expensive and it's scarce.
Deal Fanatic
Oct 7, 2007
5440 posts
1950 upvotes
datoprookie wrote:
Apr 17th, 2019 10:25 pm
Condos are not that popular at the moment just look at the huge glut of supply on the market not to mention the fire sale on assignments since people don't have the ability to close.
You are bang on! A recent survey of millennials showed that 86% of respondents would prefer to live in a detached home over a condo. Not sure who the condo builders are thinking is their target market.

P.S. I once worked for a boss who used to seriously say, "build it and they will come". He really believed it. Unfortunately, he wasn't a skilled leader who led the place into financial challenges by dedicating resources to products that weren't well accepted in the marketplace.
Deal Addict
Apr 10, 2011
1330 posts
805 upvotes
Vancouver
"The Chinese Seller"
The Province
April 16, 2019

Lisa Sun paces around the Vancouver mansion she’s been hired to sell by its wealthy Chinese-Canadian owner. The family’s had it with the new taxes and what it sees as increasing hostility to Asian capital.

Holding on to the home would mean paying potentially more than $140,000 in extra taxes annually for the Canadian owner who splits her time between Vancouver and Beijing. Canadian taxes are not the only measures weighing on the market. China’s capital controls are also limiting spending on global real estate.

“I’ve been through only the peak, never the low,”
said Sun as she schedules a makeover of the property. Pink tags indicate to the four cleaners what needs to be dumped.

The Lamborghini and Rolls-Royce in the garage, relatively unused for three years, also need to be dealt with.

https://theprovince.com/real-estate/mor ... -mansions/

..........................................

There are a large percentage of wealthy foreign buyers who own significant properties in Vancouver. Although they are rarely in Vancouver, they had no trouble obtaining Canadian citizenship to avoid being considered a "foreign buyer/owner".

They also knew they could cash at with a large tax-free capital gain when they leave. Canada, a great place to buy a passport.

***Owner is claimed to be a woman (mom). This way, the real owner, likely a wealthy businessman (dad) won't suffer under Canadian tax laws having to pay taxes on his worldwide (Chinese) income.

They've planned it perfectly!

.......................................
Last edited by RxMills on Apr 18th, 2019 1:13 pm, edited 9 times in total.
Deal Addict
Aug 21, 2007
4518 posts
387 upvotes
I think the comment above about the stresses are very true. So many people lie about their true financial situation out of fear of embarrassment. But the stats do not lieabout debt, savings, RRSP contributions, TFSA contributions. It is amazing to see this phenomena - also exacerbated in the fake life fabelbook era. I know that my colleagues in Vancouver are worried about their current fuel costs at 1.71 a litre living out in the burbs and driving to the city every day has gotten extremely costly. how this did not hit harder on the most recent inflation data is beyond me. i know several that fill up their permitted number of 5 gallon gerry cans in Bellingham since even in Blaine, gas is ridiculous. I was astonished to see prices in Blaine compared to Buffalo here. With fx, even buying in the states is more than here in Toronto. I can guarantee you that that hits every single person in the GVRD hard who is driving ridiculous distances to work. another family member eventually had to de-insure their car and take transit.
Deal Addict
Aug 21, 2007
4518 posts
387 upvotes
RxMills wrote:
Apr 18th, 2019 12:38 pm
"The Chinese Seller"
The Province
April 16, 2019

Lisa Sun paces around the Vancouver mansion she’s been hired to sell by its wealthy Chinese-Canadian owner. The family’s had it with the new taxes and what it sees as increasing hostility to Asian capital.

Holding on to the home would mean paying potentially more than $140,000 in extra taxes annually for the Canadian owner who splits her time between Vancouver and Beijing. Canadian taxes are not the only measures weighing on the market. China’s capital controls are also limiting spending on global real estate.

“I’ve been through only the peak, never the low,”
said Sun as she schedules a makeover of the property. Pink tags indicate to the four cleaners what needs to be dumped.

The Lamborghini and Rolls-Royce in the garage, relatively unused for three years, also need to be dealt with.

https://theprovince.com/real-estate/mor ... -mansions/
I hope they get soaked. Woah as me Mr. Rich man who probably made a mint of the blood and sweat of those in China that have nothing and now want to hide your money. woah as me.
Member
User avatar
Jul 25, 2015
409 posts
163 upvotes
Burnaby, BC
One article mention a big number of foreclosures. Where can we see the numbers to compare? How big is big?
Deal Guru
Jan 27, 2006
11591 posts
4824 upvotes
Vancouver, BC
Piklishi wrote:
Apr 18th, 2019 2:33 pm
One article mention a big number of foreclosures. Where can we see the numbers to compare? How big is big?
I would suspect that any number may look BIG when compared to the 10 or 20-year average when the interest rate environment has been very kind to mortgage holders (as rates have been at historic lows during this time) along with appreciating housing prices. Any numbers should be compared to a similar environment where the rates have recently increased and the housing prices are under some pressure.
Deal Expert
User avatar
Feb 9, 2003
17890 posts
2485 upvotes
Langley
Piklishi wrote:
Apr 18th, 2019 2:33 pm
One article mention a big number of foreclosures. Where can we see the numbers to compare? How big is big?
That's exactly what I was thinking. Sure, someone says there's more foreclosures... but those numbers are available for the media to report on, so why not give us the numbers? Seems like sloppy journalism.
Deal Guru
Jan 27, 2006
11591 posts
4824 upvotes
Vancouver, BC
i6s1 wrote:
Apr 18th, 2019 5:19 pm
That's exactly what I was thinking. Sure, someone says there's more foreclosures... but those numbers are available for the media to report on, so why not give us the numbers? Seems like sloppy journalism.
I'll bet that the statement was included in some report created by some special interest group.... maybe even the real estate industry trying to frighten the government into rolling back the new mortgage rules or reducing the prime rate. It seems to be the way of journalism these days to take those reports at face value and then pawn off any inaccuracies to the report by stating 'report X said this' without verifying it with another source.
Deal Fanatic
Oct 7, 2007
5440 posts
1950 upvotes
mkjr wrote:
Apr 18th, 2019 12:39 pm
I think the comment above about the stresses are very true. So many people lie about their true financial situation out of fear of embarrassment. But the stats do not lieabout debt, savings, RRSP contributions, TFSA contributions. It is amazing to see this phenomena - also exacerbated in the fake life fabelbook era. I know that my colleagues in Vancouver are worried about their current fuel costs at 1.71 a litre living out in the burbs and driving to the city every day has gotten extremely costly. how this did not hit harder on the most recent inflation data is beyond me. i know several that fill up their permitted number of 5 gallon gerry cans in Bellingham since even in Blaine, gas is ridiculous. I was astonished to see prices in Blaine compared to Buffalo here. With fx, even buying in the states is more than here in Toronto. I can guarantee you that that hits every single person in the GVRD hard who is driving ridiculous distances to work. another family member eventually had to de-insure their car and take transit.
I don't know if the people that live in BC know it yet, but BC is turning into a Canadian version of California, politically that is. People that live here are losing their freedoms every day to governments that are led by those who believe in socialism and communism (I'm not making this up, you can research the people's backgrounds for more info). It appears to me that BC is now "breaking away" from the rest of the country in its views by becoming overrun by radicals on the left, many of whom know nothing about hard work or sacrifice but believe strongly in equal outcomes. If they don't have what you own, it's not fair and time for you to pay up. Meanwhile government is growing at a pace that can only be supported by the double-digit increases to our property tax experienced on almost an annual basis. This can't end well.
Deal Fanatic
Oct 7, 2007
5440 posts
1950 upvotes
There is no real journalism anymore. At least on tv. Anyone that wants factual information will have to get themselves a treasure map to locate it. I think these people who call themselves "news" agencies should have to remove the word from their name as it is extremely misleading.
Deal Guru
Jan 27, 2006
11591 posts
4824 upvotes
Vancouver, BC
choclover wrote:
Apr 19th, 2019 11:13 am
I don't know if the people that live in BC know it yet, but BC is turning into a Canadian version of California, politically that is. People that live here are losing their freedoms every day to governments that are led by those who believe in socialism and communism (I'm not making this up, you can research the people's backgrounds for more info). It appears to me that BC is now "breaking away" from the rest of the country in its views by becoming overrun by radicals on the left, many of whom know nothing about hard work or sacrifice but believe strongly in equal outcomes. If they don't have what you own, it's not fair and time for you to pay up. Meanwhile government is growing at a pace that can only be supported by the double-digit increases to our property tax experienced on almost an annual basis. This can't end well.
We should separate the types of governments before we get too far down this road... The local civic governments have always been more left than right with the occasional election cycle where the bums get thrown out and new bums get brought it - ie think the last one. At the provincial level, the opposite is true. The province is generally right-leaning with a shot of California. It's just that once in a long while when people forgot what the NDP is all about, do enough voters put their faith in the NDP and vote them in for an election cycle or two before they get thrown back out for a decade or two.

You can see that in this very thread if you go back far enough and see how the right was bashed and the NDP were hailed as the new saviours until of course, we get to today when people suddenly remember what the NDP is all about...

Top